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On August 29, 2024
4 Sources
[1]
Super Micro Computer tumbles 25% on 10K reporting delay, accusations of accounting irregularities
WASHINGTON (AP) -- Super Micro Computer lost a quarter of its value in morning trading Wednesday after the server technology company said it was delaying the filing of its annual report. The company said in a regulatory filing that "additional time is needed for management to complete its assessment of the design and operating effectiveness of its internal controls over financial reporting as of June 30, 2024," which was the end of the company's fiscal year. Super Micro Computer's announcement comes one day after short-selling firm Hindenburg Research said a three-month review turned up new evidence of accounting manipulation by the San Jose, California-based company. Hindenburg said it has taken a short position in the stock, meaning it's betting the price will drop. The company's shares slid 25.2% in midday trading to $409.48. They hit an all-time high of $1,229 each on March 8 of this year. Hindenburg accused Super Micro of rehiring top executives that were directly involved in an accounting scandal that resulted in the company being temporarily delisted by Nasdaq in 2018 for failing to file financial statements. The Securities and Exchange Commission in 2020 charged Super Micro with improper accounting for "prematurely recognizing revenue and understating expenses" beginning at least as early as fiscal 2015 to 2017. The company paid a $17.5 million civil penalty. Super Micro has been among the technology companies recently riding a wave of enthusiasm over products and services related to artificial intelligence. Super Micro's shares more than quadrupled in less than three months to start the year as it reported booming revenue. Earlier this month, Super Micro reported fourth-quarter revenue of $5.3 billion, a more than 143% increase over the $2.2 billion it reported in the same quarter of 2023. Hindenburg said its investigation included interviews with former senior employees and industry experts and a review of records that "found glaring accounting red flags, evidence of undisclosed related party transactions, sanctions and export control failures, and customer issues." When asked for comment on the Hindenburg report, the company said in an email that it "does not comment on rumors and speculation."
[2]
Super Micro Computer tumbles 25% on 10K reporting delay, accusations of accounting irregularities
WASHINGTON (AP) -- Super Micro Computer lost a quarter of its value in morning trading Wednesday after the server technology company said it was delaying the filing of its annual report. The company said in a regulatory filing that "additional time is needed for management to complete its assessment of the design and operating effectiveness of its internal controls over financial reporting as of June 30, 2024," which was the end of the company's fiscal year. Super Micro Computer's announcement comes one day after short-selling firm Hindenburg Research said a three-month review turned up new evidence of accounting manipulation by the San Jose, California-based company. Hindenburg said it has taken a short position in the stock, meaning it's betting the price will drop. The company's shares slid 25.2% in midday trading to $409.48. They hit an all-time high of $1,229 each on March 8 of this year. Hindenburg accused Super Micro of rehiring top executives that were directly involved in an accounting scandal that resulted in the company being temporarily delisted by Nasdaq in 2018 for failing to file financial statements. The Securities and Exchange Commission in 2020 charged Super Micro with improper accounting for "prematurely recognizing revenue and understating expenses" beginning at least as early as fiscal 2015 to 2017. The company paid a $17.5 million civil penalty. Super Micro has been among the technology companies recently riding a wave of enthusiasm over products and services related to artificial intelligence. Super Micro's shares more than quadrupled in less than three months to start the year as it reported booming revenue. Earlier this month, Super Micro reported fourth-quarter revenue of $5.3 billion, a more than 143% increase over the $2.2 billion it reported in the same quarter of 2023. Hindenburg said its investigation included interviews with former senior employees and industry experts and a review of records that "found glaring accounting red flags, evidence of undisclosed related party transactions, sanctions and export control failures, and customer issues." When asked for comment on the Hindenburg report, the company said in an email that it "does not comment on rumors and speculation."
[3]
Super Micro Computer tumbles 25% on 10K reporting delay, accusations of accounting irregularities
WASHINGTON -- Super Micro Computer lost a quarter of its value in morning trading Wednesday after the server technology company said it was delaying the filing of its annual report. The company said in a regulatory filing that "additional time is needed for management to complete its assessment of the design and operating effectiveness of its internal controls over financial reporting as of June 30, 2024," which was the end of the company's fiscal year. Super Micro Computer's announcement comes one day after short-selling firm Hindenburg Research said a three-month review turned up new evidence of accounting manipulation by the San Jose, California-based company. Hindenburg said it has taken a short position in the stock, meaning it's betting the price will drop. The company's shares slid 25.2% in midday trading to $409.48. They hit an all-time high of $1,229 each on March 8 of this year. Hindenburg accused Super Micro of rehiring top executives that were directly involved in an accounting scandal that resulted in the company being temporarily delisted by Nasdaq in 2018 for failing to file financial statements. The Securities and Exchange Commission in 2020 charged Super Micro with improper accounting for "prematurely recognizing revenue and understating expenses" beginning at least as early as fiscal 2015 to 2017. The company paid a $17.5 million civil penalty. Super Micro has been among the technology companies recently riding a wave of enthusiasm over products and services related to artificial intelligence. Super Micro's shares more than quadrupled in less than three months to start the year as it reported booming revenue. Earlier this month, Super Micro reported fourth-quarter revenue of $5.3 billion, a more than 143% increase over the $2.2 billion it reported in the same quarter of 2023. Hindenburg said its investigation included interviews with former senior employees and industry experts and a review of records that "found glaring accounting red flags, evidence of undisclosed related party transactions, sanctions and export control failures, and customer issues." When asked for comment on the Hindenburg report, the company said in an email that it "does not comment on rumors and speculation."
[4]
Super Micro Computer Tumbles 25% on 10K Reporting Delay, Accusations of Accounting Irregularities
WASHINGTON (AP) -- Super Micro Computer lost a quarter of its value in morning trading Wednesday after the server technology company said it was delaying the filing of its annual report. The company said in a regulatory filing that "additional time is needed for management to complete its assessment of the design and operating effectiveness of its internal controls over financial reporting as of June 30, 2024," which was the end of the company's fiscal year. Super Micro Computer's announcement comes one day after short-selling firm Hindenburg Research said a three-month review turned up new evidence of accounting manipulation by the San Jose, California-based company. Hindenburg said it has taken a short position in the stock, meaning it's betting the price will drop. The company's shares slid 25.2% in midday trading to $409.48. They hit an all-time high of $1,229 each on March 8 of this year. Hindenburg accused Super Micro of rehiring top executives that were directly involved in an accounting scandal that resulted in the company being temporarily delisted by Nasdaq in 2018 for failing to file financial statements. The Securities and Exchange Commission in 2020 charged Super Micro with improper accounting for "prematurely recognizing revenue and understating expenses" beginning at least as early as fiscal 2015 to 2017. The company paid a $17.5 million civil penalty. Super Micro has been among the technology companies recently riding a wave of enthusiasm over products and services related to artificial intelligence. Super Micro's shares more than quadrupled in less than three months to start the year as it reported booming revenue. Earlier this month, Super Micro reported fourth-quarter revenue of $5.3 billion, a more than 143% increase over the $2.2 billion it reported in the same quarter of 2023. Hindenburg said its investigation included interviews with former senior employees and industry experts and a review of records that "found glaring accounting red flags, evidence of undisclosed related party transactions, sanctions and export control failures, and customer issues." When asked for comment on the Hindenburg report, the company said in an email that it "does not comment on rumors and speculation." Copyright 2024 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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Super Micro Computer's stock tumbles 25% following a delay in filing its annual report and accusations of accounting irregularities by short-seller Hindenburg Research. The company denies wrongdoing and promises to address the allegations.
Super Micro Computer, a San Jose-based server and storage systems manufacturer, saw its stock price plummet by 25% on Monday following a series of concerning developments 1. The company announced a delay in filing its annual report, citing the need for additional time to complete its year-end audit procedures 2.
Adding to the company's woes, short-seller Hindenburg Research published a report accusing Super Micro of engaging in improper accounting practices to inflate its revenue and earnings figures 1. Hindenburg claimed that the company was pulling forward sales from future quarters to meet aggressive targets, a practice known as "channel stuffing" 3.
Super Micro Computer vehemently denied the allegations, stating that the Hindenburg report contained "several false statements, unsupported speculation, and misleading conclusions" about the company's business practices 1. The company promised to provide a more detailed response to address these accusations in the coming days 4.
The combination of the delayed annual report filing and the Hindenburg allegations sent shockwaves through the market, causing Super Micro's stock to experience its largest single-day drop since May 2019 2. Investors expressed concern over the potential implications of these developments on the company's financial health and regulatory compliance.
This is not the first time Super Micro has faced scrutiny. In 2018, the company was the subject of a Bloomberg report alleging that Chinese spies had inserted malicious chips into its motherboards 1. While Super Micro and its customers denied these claims, the incident highlights the company's history of facing challenging allegations.
As Super Micro works to complete its audit and file its annual report, the company faces the challenge of rebuilding investor confidence. The market will be closely watching for the company's detailed response to Hindenburg's allegations and any potential findings from the delayed audit 4. The outcome of these events could have significant implications for Super Micro's future financial standing and reputation in the tech industry.
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U.S. News & World Report
|Super Micro Computer Tumbles 25% on 10K Reporting Delay, Accusations of Accounting IrregularitiesSuper Micro Computer, a $35 billion server maker, is accused of accounting fraud by short-seller Hindenburg Research. The company's stock price tumbles amid allegations and a delay in filing its annual report.
7 Sources
Super Micro Computer, a major player in the server and storage systems market, has announced a delay in its annual financial report filing. This unexpected move has raised concerns among investors and analysts about the company's financial health and reporting practices.
3 Sources
Super Micro Computer's stock experienced a significant drop, causing a ripple effect across the AI hardware sector. The decline was attributed to various factors, including valuation concerns and market volatility.
4 Sources
Super Micro Computer, an AI server maker, strongly denies claims made by short-seller Hindenburg Research regarding its operations and financial practices. The company's stock experiences significant volatility following the report's release.
2 Sources
Super Micro Computer's stock experiences a significant drop following a short seller report and market uncertainties. Investors debate whether to buy the dip or sell amid conflicting opinions on the company's future prospects.
6 Sources