(Bloomberg) -- Super Micro Computer Inc. said it will delay filing its annual financial disclosures, setting off the stock’s largest intraday decline in almost six years.
The San Jose, California-based server maker requires additional time “to complete its assessment of the design and operating effectiveness of its internal controls over financial reporting,” the company said in a filing Wednesday morning.
Super Micro said it “has not made updates to its results” for the previously reported fiscal year and quarter.
This filing delay comes a day after 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 shares fell as much as 26%, the stock’s biggest intraday drop since October 9, 2018.
The company sells high-powered servers for data centers and has experienced an explosion in demand for its wares amid the artificial intelligence boom, making its shares a proxy for enthusiasm in the nascent technology. Super Micro’s stock more than tripled last year and was up 92.6% this year through Tuesday’s close.
In 2020, Super Micro resolved an investigation by the US Securities and Exchange Commission into its accounting and disclosures for its fiscal years 2014-2017 by correcting its financial statements and paying a penalty, while promising not to commit such violations in future. After the newly announced delay, “it appears there are lingering governance issues,” wrote Woo Jin Ho, an analyst at Bloomberg Intelligence.
(Updates size of the share move in the lede and fifth paragraph.)
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