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Super Micro Computer (The value of SMCI) stock fell more than 9% on Wednesday, extending the previous day’s decline even as its CEO tried to allay fears that the Nasdaq could be delisted.
At the Reuters Next conference on Tuesday, CEO Charles Liang said he was confident that Super Micro would not be delisted and that the company will meet its new deadline set by Nasdaq to file overdue filings with the US Securities and Exchange Commission.
“Super Micro is committed to the monitoring and compliance of its regulators,” Liang says he did on Tuesday fireside chats.
Shares started the week under pressure after JPMorgan analyst Samik Chatterjee on Monday maintained an underweight rating on the stock. Even so, the researcher pointed out some factors that could boost the business.
Chatterjee wrote that, in his recent meeting with Super Micro management, the company “addressed concerns about closing operations in Malaysia.” He added that expanding the company’s operations there should “be very helpful on a large scale.” Chatterjee added that Super Micro said its customer base remains strong, with no indication that customers are shifting orders to other suppliers, despite market speculation.
Super Micro has been struggling since August report and short-selling firm Hindenburg Research, which accused the company of accounting errors, export violations, and questionable relationships between senior management and Super Micro’s partners.
Following the Hindenburg report, Super Micro delayed filing its annual 10-K and most recent 10-Q reports with the Securities and Exchange Commission, putting the company at risk of being delisted from Nasdaq.
Super Micro is said to be investigated by the Department of Justice in accordance with the alleged accounting violations. Production server calculator Ernst & Young resigned at the end of October, saying that it was not necessary to be connected with the financial documents prepared by the company’s management. And Super Micro’s first quarter earnings report on Nov. 5 missed Wall Street’s expectations.
Things started to look up for the server maker in late November when it filed a follow-up order on the Nasdaq, to encourage a general meeting. Despite the decline of the last two days, SMCI is up 65% since last month.
The company last week said An independent audit of his business found no evidence of fraud or malpracticeposting shares of about 30% in one day. Nasdaq last Friday added to Super Microgiving the company until Feb. 25 to file its late reports with the SEC to avoid dismissal.