Super Micro (SMCI) Sheds 5.5% as Firm Faces 'Material Weakness in Financial Reporting' Anew

We recently published 10 Stocks With Massive Losses; AI Firms Not Spared. Super Micro Computer, Inc. (NASDAQ:SMCI) is one of the worst performers on Friday.

Super Micro Computer, Inc. (NASDAQ:SMCI) dropped its share prices by 5.53 percent on Friday to close at $41.54 apiece following announcements that it was again facing material weaknesses in internal control over financial reporting.

In a regulatory filing to the Securities and Exchange Commission, Super Micro Computer, Inc. (NASDAQ:SMCI) said that it identified material weaknesses “in our internal control over financial reporting, which could, if not remediated, adversely affect our ability to report our financial condition and results of operations in a timely and accurate manner.”

It noted that it has already incurred, and will continue to face, significant expenses related to such circumstances.

Last year, Super Micro Computer, Inc. (NASDAQ:SMCI) was embroiled in a similar scenario that pushed its external auditor, Ernst & Young LLP, to resign over concerns about governance and transparency.

Its auditor’s resignation affected its ability to file its annual report before the deadline.

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