Super Micro Computer (SMCI) Is Likely To Disclose Its Annual Report Today After Hindenburg’s Short Attack In August Prompted An Internal Review

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Super Micro Computer (NASDAQ: SMCI), a retailer of high-performance servers and liquid-cooled AI racks, set the proverbial tongues wagging back in August when it delayed the disclosure of its requisite annual report just a day after a high-profile attack from the prolific short-seller Hindenburg Research. Now, after exhausting a statutory facility that allows for a 15-day extension, the company has to file its delayed annual report for its FY 2024 by today.

For the benefit of those who might not be aware, Hindenburg Research leveled three primary allegations against Super Micro Computer:

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1. SMCI sales team allegedly stuffs its distribution channel to the proverbial gills by pushing products to distributors based on artificially inflated demand forecasts. It also reportedly implements partial shipments to inflate the total shipment count, all in a bid to meet specific sales targets.
2. After the SEC charged Super Micro Computer for "widespread accounting violations" in 2020, resulting in a $17.5 million settlement, the company re-hired top executives responsible for those violations within a three-month period. This then resulted in another lawsuit that was filed in April 2024, asserting that SMCI restarted its improper revenue recognition practices just three months after reaching a settlement with the SEC.
3. SMCI has paid nearly a billion dollars over the past three years to non-arm's-length suppliers such as Ablecom and Compuware.

Shortly after Hindenburg published its hard-hitting report, Super Micro Computer announced that "it will not timely file its Annual Report on Form 10-K for the fiscal year ended June 30, 2024 ..."

The company noted that "additional time" was needed "to complete its