Super Micro Computer (SMCI) confirmed on Wednesday that it received a letter from Nasdaq stating that the information technology company is not in compliance with Nasdaq Listing Rule 5250(c)(1). This rule requires timely filing of periodic reports with the U.S. Securities and Exchange Commission (SEC).
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SMCI Delays Annual and Quarterly Report Filings
Specifically, Super Micro has delayed filing its annual report on Form 10-K for the fiscal year ending June 30, 2024, and its quarterly report on Form 10-Q for September 30, 2024.
The annual report was due on August 29, 2024, and the quarterly report on November 12, 2024. Although the company filed Form 12b-25 notifications requesting extensions on August 30 and November 13, the delays caught Nasdaq’s attention.
In response, Super Micro submitted a compliance plan to Nasdaq on November 18, expressing confidence that “it will be able to file the 2024 Form 10-K and the Q1 2025 Form 10-Q and become current with its periodic filings within the discretionary period available to the Nasdaq staff to grant.”
SMCI Adjusts Its Line of Credit
In a separate move to enhance financial flexibility, the company amended its Loan Agreement with Cathay Bank on November 15. The Fourth Amendment adjusted the revolving credit line to $458,000.
Is SMCI Stock a Buy?
Analysts remain sidelined about SMCI stock, with a Hold consensus rating based on two Buys, six Holds, and two Sells. Over the past year, SMCI has declined by more than 10%, and the average SMCI price target of $39.43 implies an upside potential of 52.8% from current levels.
