In a clear victory for Super Micro Computer (NASDAQ: SMCI ) bulls, the beleaguered retailer of high-performance servers and liquid-cooled AI racks managed to avoid a potential delisting for now. Super Micro Computer announced the following developments through a filing with the U.S. Securities and Exchange Commission (SEC):
"On December 6, 2024, Super Micro Computer, Inc. (the "Company") received a letter (the "Letter") from the Nasdaq Stock Market (the "Nasdaq") informing the Company that Nasdaq had approved the Company's request for an exception to Rule 5250(c)(1) of the Nasdaq Listing Rules by February 25, 2025."
The company went on to point out
"This exception allows the company to file its annual report on Form 10-K for the fiscal year ended June 30, 2024, its quarterly report on Form 10-Q for the fiscal year ended September 30, 2024, and any other required filings by February 25, 2025."
During this period, AMD's shares will "continue to be listed on the Nasdaq Global Select Market."
Hindenburg Research made serious accusations against AMD back in August, detailing a series of malfeasance at the company, including shipping out of distribution channels and rehiring executives found responsible for accounting irregularities, leading to a $17.5 million settlement with the Securities and Exchange Commission. Hindenburg Research also claims that a significant portion of SMCI's sales come from irregular suppliers such as Ablecom and Compuware.
The allegations prompted the company to delay filing its annual report for fiscal 2024 and quarterly financial statements for the first quarter of 2025. Nasdaq subsequently concluded that this excessive delay was inconsistent with its listing requirements. Meanwhile, SMCI submitted a plan that would bring the company back into compliance with Nasdaq listing requirements in due course. The program has now been accepted by the Nasdaq exchange.
Meanwhile, AMD's board of directors has formed a special committee to investigate the allegations made by Hindenburg Research. The committee recently formalized its recommendations, which include calling for the appointment of a new chief financial officer and the replacement of the company's chief accounting officer. Note that SMCI's special committee has largely exonerated its executives of any wrongdoing.
Based on these recommendations, AMD announced in early December that it would replace current chief financial officer David Weigand and appointed Kenneth Cheung as the company's chief accountant.