Super Micro Computer Inc (NASDAQ:SMCI) reported fourth quarter earnings which beat Wall Street estimates, but the stock is reeling after the company said it will be unbale to meet an August 24 deadline to regain compliance with the Nasdaq Stock Market.
The company expects a Nasdaq panel to begin delisting proceedings. Super Micro was late filing its 10-K for the year ending June 30, 2017 and its 10-Q reports for the quarters ending September 30, 2017 and December 31, 2017, plus March 31, 2018.
“While the Company has made significant progress toward completing the necessary accounting review processes, it has determined that the Delinquent Reports will not be filed with the SEC by August 24, 2018,” the company said in a statement released Tuesday.
Shares of Super Micro Computer plunged nearly 20.2% to US$14.65.
Meanwhile, the San Jose, California-based company reported fourth quarter earnings of US$0.40 per share on revenue of US$717.9mln. The consensus earnings estimate was US$0.37 per share on revenue of US$681.5mln. Revenue grew 36.9% on a year-over-year basis.
Super Micro Computer is a server technology and green computing company. It develops and provides high performance server solutions based on open-standard architecture.
“Supermicro has built a strong foundation for sustained high growth while improving profitability. During the last couple of years we have made significant investments in global production capacity, engineering, quality, global services, and systems and datacenter management software. It is these investments that will power the new Supermicro 3.0," Super Micro Computer CEO Charles Liang said in a statement.
As of June 30, the company had US$94.1mln in cash and equivalents and US$116.2mln in bank debt, according to Seekeing Alpha.
Contact Uttara Choudhury at [email protected]