(Bloomberg) — Super Micro Computer Inc. has Evercore Inc. brought in to help the company raise capital, according to people familiar with the matter, as the embattled server maker looks to shore up its finances.
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The maker of high-performance servers, which is trying to avoid a delisting after missing the August deadline for filing its annual financial report, is considering raising equity and debt, the people said, asking not to be identified when discussing private matters.
San Jose, California-based Super Micro is considering a potential private investment in public equity, or PIPE, and is approaching private equity firms to gauge their interest in participating, the people said.
The talks are in the early stages and the company’s plans could change, the people added. Representatives for Super Micro and Evercore declined to comment.
Shares of Super Micro, down 69% from their all-time high in March, closed down 3.9% to $36.45 in New York on Friday, giving the company a market value of about $21 billion. Shares fell about 7% after the close of regular trading.
A jump in demand for the equipment that powers artificial intelligence software has boosted sales of Super Micro, a company that makes data center servers. Still, investors are concerned about the longer-term profitability of AI-optimized servers due to the need for expensive chips from companies like Nvidia Corp.
Super Micro started 2024 on a high, with shares quadrupling in the first quarter. However, shares later fell partly because turnover and profit fell below expectations.
Super Micro’s auditor, Ernst & Young LLP, resigned in October over concerns about the company’s governance and transparency. The company is also facing an investigation from the US Department of Justice following a report by short seller Hindenburg Research.
The company has not filed its financial report for the fiscal year ending June 30, as well as its quarterly earnings report for the period ending September 30. Super Micro said in a statement last week that it received an extension from Nasdaq and plans to file the documents before a February 25 deadline.
–With help from Ryan Gould and Brody Ford.
(Updates on server query concerns in sixth paragraph.)
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