Super Micro confirms that it will delay its annual financial submissions

(Bloomberg) — Super Micro Computer Inc. said it would not file its annual financial report while a special board committee examines internal controls, confirming a statement earlier this week that sent shares to their worst decline in nearly six years.

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The computer server maker said it would require “unreasonable effort or expense” to file its annual 10K financial disclosures on time for the quarter and fiscal year ended June 30.

Super Micro first announced on August 28 that it would delay financial filings and confirmed its decision in a regulatory filing on Friday. The San Jose, Calif.-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 statement that it does not expect the annual financial filing to contain any significant changes to its results announced on August 6.

After Friday’s filing, shares gained about 2 percent in extended trading. Earlier, the stock suffered its worst week since October 2018, falling 29% to $437.70 at the close in New York.

The company sells high-powered servers for data centers and has seen demand for its products explode amid the artificial intelligence boom, making its stock a proxy for excitement about the technology. Super Micro stocks tripled last year.

–With help from Brody Ford.

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