Super Micro Computer, Inc.
- Company Name
- Super Micro Computer, Inc.
- Stock Symbol
- Class Period
- August 5, 2016 to January 30, 2018
- Motion Deadline
- April 9, 2018
- Northern District of California
The complaint charges Super Micro and certain of its officers with violations of the Securities Exchange Act of 1934. Super Micro designs, develops, manufactures and sells server solutions based on modular and open-standard architecture. The Company's products include servers, motherboards, chassis and accessories.
The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements and or failed to disclose adverse information regarding the Company’s business and financial results, including that Super Micro’s financial statements contained accounting errors due to the premature recognition of revenue from sales transactions and that the Company’s internal controls over financial reporting were not effective. As a result of these false statements and/or omissions, Super Micro securities traded at artificially inflated prices during the Class Period, with its stock price reaching a high of $29 per share.
On August 29, 2017, Super Micro announced that it would not be able to file its “Form 10-K for fiscal year ended June 30, 2017 . . . in a timely manner” and that “[a]dditional time [was] needed for the Company to compile and analyze certain information and documentation and complete preparation of its financial statements.” On this news, the price of Super Micro stock fell $1.35 per share, or nearly 5%, to close at $25.85 per share on August 30, 2017.
On September 14, 2017, Super Micro disclosed that it had received a notice from the NASDAQ stock exchange indicating that it was not in compliance with listing requirements as a result of its failure to timely file its annual report. The release also disclosed that the Company was conducting an internal audit committee review, but provided no information as to the issues under review or the expected timeline for completion. On this news, the price of Super Micro stock declined 16% over two trading days to close at $21.20 per share on September 18, 2017.
On October 26, 2017, Super Micro issued a press release revealing the nature of the issues under audit and the general reasons for the Company’s inability to file its annual report. The release stated that the Company had prematurely recognized sales revenue during the quarter ended December 31, 2016. The release also stated that Super Micro’s audit committee had initiated an investigation to determine whether additional improper transactions existed that had been improperly accounted for. On this news, the price of Super Micro stock fell $1.23 per share, or more than 5%, to close at $20.48 per share on October 27, 2017.
Then on January 30, 2018, after the market closed, Super Micro announced that the Company’s “Audit Committee ha[d] completed the previously disclosed investigation” and that “[a]dditional time [would be] required to analyze the impact, if any, of the results of the investigation on the Company's historical financial statements, as well as to conduct additional reviews before the Company w[ould] be able to finalize its Annual Report on Form 10-K for the fiscal year ended June 30, 2017.” Super Micro also announced the resignations of three of its executives: Wally Liaw, Senior Vice President of International Sales; Phidias Chou, Senior Vice President of Worldwide Sales; and Howard Hideshima, Senior Vice President and Chief Financial Officer. Following this news, the price of Super Micro stock fell $1.83 per share, or more than 7%, to close at $22.83 per share on January 31, 2018.