Super Micro Computer Stock Soars on Nasdaq Listing Extension

Shares of Super Micro Computer, or Supermicro (SMCI), jumped in premarket trading Monday after the troubled server maker announced that it won't face a possible delisting by the Nasdaq for a couple of months.

The company wrote in securities filing that it had received a letter from the Nasdaq notifying it that the market had granted its request for an exception to meet its listing requirements through Feb. 25.

Supermicro was under threat of being kicked out of the Nasdaq because questions over its accounting led to the firm delaying its annual report for the fiscal year that ended last June, in violation of Nasdaq rules. Supermicro noted that now has until that Feb. 25 deadline to do so, and if the report is filed on time, it will not face delisting.

Just last week, Supermicro reported that an independent investigation of its accounting practices found no misconduct by the company's senior management or audit committee. The study also said that the reasons Supermicro's former auditor, EY, resigned, "were not supported by the facts." When it stepped down, EY explained that it was "unwilling to be associated with the financial statements prepared by management." In addition to the findings, Supermicro indicated it will replace its finance chief.

The accounting questions had caused shares of Super Micro Computer to yo-yo during the year. They fell to their lowest level since May 2023 last month, but have climbed since then and have added more than 50% of their value this year.