By Brian Swint
Super Micro Computer, the server maker that has delayed filing its earnings, extended declines early Monday after a report said it's looking to shore up its finances by raising fresh capital.
The company has hired investment bank Evercore and is considering selling more shares as well as bonds, Bloomberg reported Friday, citing people familiar with the matter. Super Micro didn't immediately respond to a request for comment made outside of normal business hours.
The stock, which trades as SMCI, lost more than 17% last week as investors assessed the outlook. While an internal probe showed no evidence of wrongdoing in the events that led it to delay filing accounts with the Securities and Exchange Commission, it still has yet to publish them. It has an extension until Feb. 25, which helps it avoid the immediate threat of delisting from the Nasdaq.
The stock has been up and down this year. It hit an all-time closing high of $119 in mid-March but later slumped as low as $18. It has since hired a new auditor after its previous one, Ernst & Young, resigned saying it didn't want to be associated with Super Micro's financial statements.
Shares dove 12% in premarket trading Monday to $32.23. Coming into the session, they're still up 28% this year and have gained almost 70% in the past month.
The company's smaller market value caused it to be knocked out of the Nasdaq 100, an index of the Nasdaq's biggest nonfinancial companies.
Write to Brian Swint at brian.swint@barrons.com
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(END) Dow Jones Newswires
December 16, 2024 05:37 ET (10:37 GMT)
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