Super Micro Computer Received Non-Compliance Letter From Nasdaq

Super Micro Computer, Inc. received a notification letter from Nasdaq stating that the company is not in compliance with Nasdaq listing rule 5250(c)(1), which requires timely filing of reports with the U.S. Securities and Exchange Commission.

The September 14, 2017 letter was sent as a result of the delay in filing its annual report on Form 10-K for the period ending June 30, 2017. The Form 10-K was due on August 29, 2017. The company filed a Form 12b-25 on August 29, 2017, the effect of which was to extend the due date for the Form 10-K to September 13, 2017. The firm was unable to file the Form 10-K by September 13, 2017, for the reasons reported in the Form 12b-25 and further described below.

The Nasdaq notice has no immediate effect on the listing or trading of the company’s common stock on the Nasdaq Global Select Market. Under the Nasdaq rules, the Company has 60 days from the date of the notice either to file the Form 10-K or to submit a plan to Nasdaq to regain compliance with Nasdaq’s listing rules. If a plan is submitted and accepted, the firm could be granted up to 180 days from the Form 10-K’s due date to regain compliance. If Nasdaq does not accept the company’s plan, then it will have the opportunity to appeal that decision to a Nasdaq hearings panel.

As previously disclosed by the company, additional time is needed to compile and analyze certain information and documentation and finalize its financial statements, as well as complete a related audit committee review, in order to permit the company’s independent registered public accounting firm to complete its audit of the financial statements to be incorporated in the Form 10-K and complete its audit of the company’s internal controls over financial reporting as of June 30, 2017. It is unable at this time to provide a date as to when the review and the audits will be completed.

There is no update to the company’s previously announced guidance for net sales for the first quarter of fiscal year 2018 ending September 30, 2017. However, as a result of additional efforts required to finalize the financial statements and complete the audit committee review, the company expects operating expenses for the quarter to increase due to higher legal and accounting costs.

The firm intends to file its 10-K promptly upon completion of the audit committee’s review and the completion of the audit.