Though this happened earlier in the week, I just now found out about it. Given how well-known the company is, I thought other Soylentils would like to know about this, too.
Supermicro® Announces Suspension of Trading of Common Stock on Nasdaq and its Intention to Appeal:
Super Micro Computer, Inc. (NASDAQ:SMCI) [...] today announced that, as expected, the Company received a notification letter from The Nasdaq Stock Market Hearings Panel [...] on August 22, 2018, indicating that trading in the Company's common stock on Nasdaq's Global Select Market will be suspended effective at the open of business on August 23, 2018.
The Company previously announced on August 21, 2018 that it did not expect to regain compliance with the Nasdaq continued listing requirements by August 24, 2018, the deadline previously set by the Panel.
The Panel's letter also stated that the Panel has determined to delist the Company's shares from Nasdaq after applicable appeal periods have lapsed. The Company intends to appeal the Panel's decision to the Nasdaq Listing and Hearing Review Council. During the appeal period, trading in the Company's common stock on Nasdaq will remain suspended and Nasdaq will not delist the Company's common stock pending such appeal. Once the Company has regained compliance with its SEC filing requirements, the Company intends to promptly request that Nasdaq lift the suspension in trading of its common stock or, in the event the common stock is delisted, to promptly apply to relist its common stock on Nasdaq or another national securities exchange.
While the Company's common stock is suspended from trading on Nasdaq, the Company expects that its shares will be quoted on the OTC Markets under the trading symbol SMCI.
According to Wikipedia:
Super Micro Computer, Inc (commonly referred to as Supermicro) is an American information technology company based in San Jose, California. Supermicro's headquarters are located in Silicon Valley, with global operations expanding to a manufacturing space in the Netherlands and a Science and Technology Park in Taiwan.
Founded by Charles Liang, Wally Liaw and Sara Liu on 1 November 1993, Supermicro specializes in servers, storage, blades, rack solutions, networking devices, server management software and high-end workstations for data center, cloud computing, enterprise IT, big data, high performance computing (HPC), and embedded markets.
In 2016, the company deployed thousands of servers into a single data center and was ranked the 18th fastest growing company on Fortune Magazine's Top 100 list of the world's largest US publicly traded companies in 2016 and the fastest growing IT infrastructure company.
Also at Silicon Valley Business Journal, Yahoo! Finance & The Register.
(Score: 1, Interesting) by Anonymous Coward on Monday September 03 2018, @03:55PM (5 children)
By the time it gets released, it's been almost two weeks.
So why are they out of compliance with Nasdaq?
(Score: 4, Informative) by choose another one on Monday September 03 2018, @04:39PM (4 children)
> So why are they out of compliance with Nasdaq?
according to TheRegister link it's because they have only released abbreviated results which is less than required, apparently because they are still investigating previous results to find out how big the black holes are.
OTOH it seems a little harsh since it seems you can release duff results (knowingly?) and then restate them later without being delisted, but if you are honest and any results would be misleading until we complete the investigation. you get punished for it.
(Score: 0) by Anonymous Coward on Monday September 03 2018, @05:17PM
Because they are very bad at accounting (the language of business, and you must be fluent in accounting to avoid the wrath of the SEC). They have to restate earnings from fiscal 2017 until their last quarterly reports. Seems that they booked revenue to incorrect accounting periods and their audit did not get done in time.
(Score: 4, Informative) by VLM on Monday September 03 2018, @05:18PM (1 child)
They claimed to be a very high growth rate company about to break out of the "other" category and compete with the "Dell"s of the world, etc. So its kinda a game of chicken, hey NASDAQ you wouldn't delist me and totally F over the stock price, wouldya, so just gimmie a little more time? Well, NASDAQ called their bluff on that one, didn't they...
My guess is when the paperwork clears (perhaps in shareholder lawsuit court) the truth will be they were merely a medium-high growth rate company, so they were hoping for "normal" 30% sales growth over a year or two to catch up with the faked stats claiming they were growing at 5000% rates or WTF it is exactly., but that's just a semi-educated opinion. They could, of course, just be incompetent in the usual trivial ways and got steamrolled. From memory, using the fake data, before the CFO got fired, they were claiming stuff like being one of the fastest growing companies in the world, whereas in reality they merely seem to be doing well.
(Score: 1) by khallow on Tuesday September 04 2018, @01:41AM
My bet is that we'll find they weren't even that. If things are so bad that they can't fix the accounting in a few weeks, my take is that it means the company was hiding a lot of sins. And these sins usually are money sinks.
(Score: 2) by All Your Lawn Are Belong To Us on Tuesday September 04 2018, @07:24PM
IIRC, IANAL, and I could be wrong, but I'm pretty sure that releasing all statements, even with a disclosure that major restatements will be occurring, is preferable to not releasing complete financials. The former fully informs the investment community and cautions it, the latter is trying to get away with something.
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