Supermicro Stock’s Brutal 2024 Keeps Getting Worse

• Shares of Super Micro Computer extended their 2024 swoon on Wednesday, with the stock dropping after the company said it would not submit its fiscal first-quarter results in a timely manner.

• Supermicro said last month that it could not predict when it would file its annual report for 2024. The company risks being delisted from the Nasdaq.

• Supermicro’s shares are down more than 25% this year and well off 2024 highs.

Shares of Super Micro Computer (SMCI) extended their 2024 swoon on Wednesday, with the stock dropping after the company said it would not submit its fiscal first-quarter results in a timely manner.

The IT infrastructure company released preliminary September-quarter results earlier this month but now says it needs additional time to hire a new auditor and have it review the company’s results.

Accounting firm EY resigned as Supermicro’s auditor on Oct. 30 following months of speculation about the company’s accounting practices. Supermicro said a special committee formed by its board of directors found no evidence of fraud or misconduct.

Shares of Supermicro, down roughly 5% in Wednesday trading, are down more than 25% in 2024 to around $21 apiece. Earlier this year they traded around $120.

The first-quarter filing delay comes after Supermicro said last month that it could not predict when it would file its annual report for 2024, a necessity for it to comply with Nasdaq rules. If the delays continue, Supermicro could be delisted from the exchange altogether.

Supermicro previously disclosed that it received a warning letter from the Nasdaq saying it had until Nov. 16, to file or submit a plan.