Super Micro Computer, a major server manufacturer, announced a delay in filing its annual 10-K report for the fiscal year ending June 30, 2024, amid allegations of accounting manipulation.
Super Micro Computer published a statement on its website on August 28, saying it will not file its annual report on Form 10-K for the fiscal year ended June 30, 2024, on time. The company expects to file a Notification of Late Filing on August 30, 2024, citing the need for more time to complete its assessment of internal controls. No updates have been made to the previously announced results for the fiscal year and quarter ended June 30, 2024.
The news came after short-selling firm Hindenburg Research released a report on its website on August 27, alleging that Super Micro Computer might be involved in accounting manipulation and self-dealing, including the improper recognition of revenue and undisclosed transactions with companies run by CEO Charles Liang's brothers.
With the surge in demand for servers driven by the AI boom, Super Micro Computer has benefited significantly, becoming one of the winners in the market.
Recent reports indicated Dell has been winning orders from Super Micro Computer's customers, including CoreWeave and Tesla. Amazon, which sourced servers from Super Micro Computer, ceased procuring servers from the latter due to delivery issues.
According to Hindenburg Research, Super Micro Computer had undisclosed business relationships with companies run by Charles Liang's brothers. Liang's youngest brother operates two server component companies in Taiwan that supply Super Micro Computer.
Another brother of Charles Liang holds executive and shareholder positions in companies based in Hong Kong and Taiwan, which may be involved in reselling Super Micro Computer's products while also providing specialized manufacturing services. These companies are located in the same building as Compuware Technology, founded by Charles Liang's brother.
