Supermicro was dropped from the Nasdaq 100 index on December 16.
It comes as the company continues to face accounting and financial reporting issues, with the server maker still yet to file its most recent quarterly and annual reports.
Supermicro joined the Nasdaq 100 – an index made up of the top 100 non-financial stocks on the Nasdaq – in July. However, due to the company’s market cap falling below $20 billion, it is no longer big enough to merit inclusion on the index.
Supermicro’s stock fell eight percent on the news.
Earlier this month, an independent special committee formed by the board of Supermicro set up to examine concerns relating to the company’s accounting practices, serious allegations from a short seller, and an ongoing investigation from the US Department of Justice said it found “no evidence of fraud or misconduct” on the part of management or the board.
Despite auditor EY resigning in October stating it was “unwilling to be associated with the financial statements prepared by management,” the special committee claimed "the conclusions EY stated in its resignation letter were not supported by the facts examined in the review."
However, the committee did recommend Supermicro replace its CFO, a process which the company said it has started, with current CFO David Weigand retaining the role until a replacement is found.
Supermicro remains at risk of being delisted from the Nasdaq altogether due to its delayed financial reporting, but two weeks ago was granted an extension until February 2025.
Supermicro was temporarily delisted in 2018 for failing to file financial statements, and in 2020 was fined by the SEC for “widespread accounting violations."