Super Micro Faces Deadline to Keep Nasdaq Listing After 85% Plunge in Stock

California-based computer hardware manufacturer Super Micro Corp. has until the first half of June 2023 to regain compliance with Nasdaq listing requirements following an 85% decline in its stock price over the past year.

The Nasdaq Stock Market notified Super Micro in December 2022 that it was not in compliance with the exchange's minimum bid price requirement, which mandates that a stock must trade above $1 per share for at least ten consecutive business days.

Super Micro's stock has been trading below $1 since mid-November 2022. The company has until June 12, 2023, to regain compliance or face delisting from the Nasdaq.

The decline in Super Micro's stock price has been attributed to several factors, including global economic headwinds, supply chain disruptions, and intense competition in the server market.

The company has also been facing legal challenges related to alleged accounting irregularities and a class action lawsuit filed by shareholders over the company's financial reporting practices.

In an effort to address its Nasdaq compliance issues, Super Micro has been actively repurchasing its shares. The company repurchased approximately $100 million worth of shares in the fourth quarter of 2022.

Super Micro has also been exploring strategic alternatives to improve its financial performance, including a potential sale of the company.

The company is reportedly in talks with several potential buyers, including private equity firms and other technology companies.

If Super Micro is delisted from the Nasdaq, it would be a significant setback for the company. Delisting would make it more difficult for Super Micro to raise capital and could damage its reputation with investors and customers.

Super Micro is a leading provider of server and storage solutions for enterprise and cloud computing applications. The company's products are used by a wide range of customers, including Fortune 500 companies and government agencies.

Super Micro was founded in 1993 and is headquartered in San Jose, California. The company has over 10,000 employees worldwide.