Super Micro receives Nasdaq listing extension and expects to submit financials by February.

• Super Micro announced on Friday that it had received an extension from Nasdaq, delaying a potential delisting until at least February.
• The server manufacturer may be at risk of being removed from the market due to its failure to submit audited financial reports for the past year.
• Super Micro anticipates submitting revised reports by the February deadline.

On Friday, the embattled server maker announced that it had received an extension from Nasdaq, allowing the company to maintain its listing on the stock exchange until February.

The stock rose 7% in extended trading.

Super Micro is at risk of being delisted from the Nasdaq due to its failure to submit audited year-end financials for the latest fiscal year and its tardiness in submitting quarterly results. With Friday's announcement, Super Micro has until at least February 25 to submit and have its SEC filings accepted.

"During the exception period, the Company's common stock will remain listed on the Nasdaq Global Select Market. However, if the Company fails to file all the required reports by February 25, 2025, the common stock will be delisted."

By the deadline, Super Micro anticipates submitting the reports.

Super Micro's stock has faced the risk of delisting due to its recent surge in sales. The company is a leading vendor for AI-based computer clusters, and expects to achieve sales growth of approximately 67% to about $25 billion in fiscal 2025.

Super Micros appointed BDO as its auditor in October after Ernst & Young resigned, and the company's reputation suffered in August due to accusations of accounting manipulation by activist investor Hindenburg Research.

Super Micro announced on Monday that it had completed an internal investigation, led by a board member, which found no evidence of misconduct. Additionally, the company stated that it planned to replace CFO David Weigand and had appointed a new accounting chief.

In March of this year, Super Micro's stock price increased more than 14 times from its value at the end of 2022. However, since then, the stock has lost approximately 60% of its value.

The Nasdaq delisting process can take approximately one year, as it did for Super Micro in 2018.

WATCH: Super Micro appoints BDO as auditor