Why Super Micro Computer Stock Sank Today
Super Micro Computer (NASDAQ: SMCI) stock fell in Wednesday's trading after the company said that it would not be able to file its quarterly 10-Q report on time. The company's share price closed out the daily session down 6.3%.
Supermicro submitted a filing to the Securities and Exchange Commission (SEC) today stating that it would not be able to meet the deadline for its 10-Q report without unreasonable effort or expense. Missing the filing deadline likely stems from Ernst & Young (EY) resigning as the company's financial auditor in October. The stock is now down 57.5% over the last month, and it could face continued sell-offs unless Supermicro can get its financial filings back on schedule and allay investor concerns.
EY stepped down as Supermicro's financial auditor in October, stating that it had resigned due to "information that has recently come to our attention which has led us to no longer be able to rely on management's and the Audit Committee's representations and to be unwilling to be associated with the financial statements prepared by management." The public accounting firm's decision to step back from the role came on the heels of a bearish report published by short seller Hindenburg Research in August, which alleged repeated accounting violations at the company.
Source Fool.com
