Server maker Supermicro said that it would not file its annual report with the US Securities and Exchange Commission on time.
The company said that additional time was needed to "complete its assessment of the design and operating effectiveness of its internal controls over financial reporting."
The delay comes a day after short seller Hindenburg Research disclosed a short position in the company.
Hindenburg claimed that, in a three-month investigation, it found evidence of undisclosed related party transactions, a failure to abide by export controls, and other issues.
Supermicro was temporarily delisted in 2018 for failing to file financial statements, and 2020 was fined by the SEC for “widespread accounting violations."
The short seller claimed that most of the executives fired for being involved in the accounting scandal were rehired soon after. It then alleges that within three months the company restarted “improper revenue recognition,” “recognizing incomplete sales,” and “circumvention of internal accounting controls.”
Pressure to meet quotas led to company salespeople making “partial shipments” or by shipping defective products around quarter-end, Hindenburg claimed. The short seller also claimed unusual dealings with companies owned by the brothers of CEO Charles Liang.
Hindenburg also alleged that Supermicro sold millions of dollars in servers to Russian entities, even after the Ukraine war.
Among other allegations, Hindenburg said that relations with companies like Digital Ocean, Genesis Cloud, GMI Cloud, and NexGen Cloud were strained due to unusually high failure rates with its servers.
Shares in the company fell only slightly following the report, with JPMorgan saying that some of Hindenburg’s claims were “tough to verify” and adding that the report was “largely void of details around alleged wrongdoings from the company.”
However, with Supermicro stating today that it was "unable to file its Annual Report within the prescribed time period without unreasonable effort or expense," shares cratered some 25 percent.
Shares in the company are still up more than 47 percent this year after Supermicro's valuation soared thanks to the generative AI data center boom.