Super Micro Stock Rises as Moment of Truth Nears

Shares of Super Micro Computer were edging higher Friday as the server maker quickly approaches a delisting deadline.

The stock was up 1.3% to $18.24 in premarket trading Friday, which would snap a five-day losing streak, according to Dow Jones Market Data. Shares have fallen 38% this month and are down 85% from their all-time high reached in March.

The company delayed filing its 10-K for the fiscal year ended June 30. It’s something every company must do to maintain its listing on one of the two major U.S. exchanges. (Super Micro also delayed the filing of its 10-Q on Wednesday). After receiving a letter from the Listing Qualifications Department of the Nasdaq Stock Market on Sept. 17, the company had 60 calendar days to file or submit a plan to the Nasdaq to regain compliance with listing rules.

Based on that calculation, the deadline would be Nov. 16, but because it falls on a Saturday there may be a bit more time on the clock.

“In computing a period of time under the Rule 1010 Series, the day of the act, event, default, or lapse from which the period of time designated begins to run shall not be included,” according to the Nasdaq listing rules. “The last day of the period so computed shall be included unless it is a Saturday, Sunday, or Federal holiday, in which event the period runs until the end of the next day that is not a Saturday, Sunday, or Federal holiday.

That would suggest the deadline is Monday, Nov. 18.

“As we previously disclosed, Supermicro intends to take all necessary steps to achieve compliance with the Nasdaq continued listing requirements as soon as possible,” a company spokesperson told Barron’s.