Super Micro Computer tumbles 25% on 10K reporting delay, accusations of accounting irregularities

abcnews.go.com:

Super Micro Computer lost a quarter of its market value by midday Wednesday after the server technology company said it was delaying the filing of its annual report

WASHINGTON — Super Micro Computer lost a quarter of its value in morning trading Wednesday after the server technology company said it was delaying the filing of its annual report.

The company said in a regulatory filing that “additional time is needed for management to complete its assessment of the design and operating effectiveness of its internal controls over financial reporting as of June 30, 2024," which was the end of the company's fiscal year.

Super Micro Computer's announcement comes one day after short-selling firm Hindenburg Research said a three-month review turned up new evidence of accounting manipulation by the San Jose, California-based company. Hindenburg said it has taken a short position in the stock, meaning it's betting the price will drop.

The company's shares slid 25.2% in midday trading to $409.48. They hit an all-time high of $1,229 each on March 8 of this year.

Hindenburg accused Super Micro of rehiring top executives that were directly involved in an accounting scandal that resulted in the company being temporarily delisted by Nasdaq in 2018 for failing to file financial statements. The Securities and Exchange Commission in 2020 charged Super Micro with improper accounting for “prematurely recognizing revenue and understating expenses" beginning at least as early as fiscal 2015 to 2017. The company paid a $17.5 million civil penalty.

Super Micro has been among the technology companies recently riding a wave of enthusiasm over products and services related to artificial intelligence.

Super Micro's shares more than quadrupled in