Super Micro Computer (NASDAQ:) shares dropped over 4% in premarket trading Wednesday following the company’s announcement of a delay in filing its quarterly 10-Q report for the period ending September 30, 2024.
A Form 10-Q is the company’s quarterly financial report.
In its press release, Super Micro Computer attributed the delay to unresolved issues related to an ongoing internal review of the company’s controls and reporting processes.
The review, initiated by the company’s board in response to concerns raised by the company’s former accounting firm, has resulted in delays for both the 2024 annual 10-K filing and the current quarterly 10-Q.
In August, SMCI delayed the filing of its annual report, citing a need to assess its internal controls over financial reporting.
Then, in late October, Ernst & Young resigned as SMCI’s accounting firm, saying it was no longer able to rely on management’s and the Audit Committee’s representations and was unwilling to be associated with the financial statements prepared by management.
The news sent SMCI shares tumbling more than 30% and deepened investor worries about accounting practices at the artificial intelligence server maker.
A special committee established by SMCI’s board has concluded an initial investigation but requires further time to complete additional work, according to SMCI’s latest press release.
Key tasks are said to include appointing a new accounting firm and finalizing the assessment of the company’s internal controls as of June 30, 2024.
The company cited the need to engage a successor accounting firm and for this new firm to conduct a thorough audit of financial statements and internal controls before both the 10-K and the latest 10-Q can be filed.
