Super Micro Computer stated that it does not expect its delayed annual filing to show materially different results
Shares of Super Micro Computer SMCI+2.93% recovered nearly 3% on Tuesday morning after the company reassured customers and partners in the wake of a critical report by Hindenburg Research. The company stated that the report was misleading and contained false or inaccurate information, and it will address the report in due course.
“As you may know, short seller reports are designed to drive the stock price downwards to serve the short seller’s interests to the detriment of the company’s shareholders,” Chief Executive Charles Liang stated in a letter to customers and partners that was filed with the Securities and Exchange Commission on Tuesday morning.
The company has announced that it will form a committee to look into its financial controls. It also stated that it does not expect its delayed annual filing to show materially different results from those already reported for the latest fiscal year.
“Our production capabilities are unaffected and continue operating at pace to meet customer demand,” Liang said in the SEC letter.
Last week, short seller Hindenburg Research published a scathing report accusing Super Micro Computer of accounting red flags and questionable business dealings, including potential sanctions evasion from exports to Russian and Chinese firms.
Over the course of three months, Hindenburg carried out an investigation into Super Micro, a provider of AI server and computer infrastructure. It found “glaring accounting red flags, evidence of undisclosed related party transactions, sanctions and export control failures, and customer issues,” according to the report.
Super Micro was briefly delisted from the Nasdaq $NDAQ in 2018 for failing to file financial statements. Regulators later charged the company for “widespread accounting violations,” including improperly reporting revenue, and fined it $17.5 million. Less than three months later, however, Super Micro re-hired top executives that were directly involved in the scandal, Hindenburg alleged.
“All told, we believe Super Micro is a serial recidivist,” Hindenburg said in its report. “It benefitted as an early mover but still faces significant accounting, governance and compliance issues and offers an inferior product and service now being eroded away by more credible competition.”
Following the report from the short seller, Super Micro Computer said that it would delay filing its next financial reports.
-William Gavin and Rocio Fabbro contributed to this article
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