Super Micro Computer (SMCI, Financial) rose by 16% on Monday after the Company was said to be preparing a compliance plan for Nasdaq. This plan is intended to mitigate regulatory problems and delisting following the failure to meet financial report filing deadlines. Nasdaq voted the Company a last warning in September and demanded that Super Micro submit the delayed reports or explain why they have not been compiled by November 16.
The proposal comes at a time when the AI-focused server maker has been experiencing some challenges despite recording high growth earlier this year. This was further amplified in March when the Company's stock increased by 318% as it sought to crédolize itself as an AI company. But since then, its stock performance has greatly nosedived, and for this year, it has been down by 33%.
Still, Lynx Equity Strategies' analysts claim that submitting a compliance plan is not a big shock, referring to the words of Super Micro's CFO in the firm's recent earnings call. Although the Company has not officially announced the plan, the proposed plan is believed to be essential to rebuild investor confidence and keep its listing on the Nasdaq.
