(Bloomberg) — Super Micro Computer Inc. said that it won’t file its annual financial report while a special board committee reviews internal controls, confirming a press release earlier this week that sent the shares on their worst drop in almost six years.
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The maker of computer servers said it might take “unreasonable effort or expense” to file on time its annual 10-K financial disclosures for the quarter and financial 12 months ended June 30.
Super Micro first announced on Aug. 28 that it might delay the financial documents and confirmed its decision Friday in a regulatory filing. The San Jose, California-based company said a special committee is working diligently to evaluate the effectiveness of its internal controls over financial reporting.
Earlier this week, short-seller Hindenburg Research released a critical report alleging “glaring accounting red flags, evidence of undisclosed related party transactions, sanctions and export control failures, and customer issues.”
Super Micro repeated its assertion that it doesn’t expect the annual financial filing to contain any material changes to its results announced on Aug. 6.
After Friday’s filing, the shares gained about 2% in prolonged trading. Earlier, the stock suffered its worst week since October 2018, dropping 29% to $437.70 on the close in Latest York.
The corporate sells high-powered servers for data centers and has experienced an explosion in demand for its wares amid the unreal intelligence boom, making its shares a proxy for enthusiasm within the technology. Super Micro’s stock greater than tripled last 12 months.
–With assistance from Brody Ford.
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