Business Context and Reporting Period
Company: Super Micro Computer, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: May 8, 2008
Subject: Non-reliance on previously issued financial statements for the quarterly periods ended December 31, 2007, and 2006.
Key Financial Metrics
This filing does not report new revenue, profit, or debt figures. It addresses a specific classification error in the Statement of Cash Flows:
- Error Amount (Six months ended Dec 31, 2007): $2,418,000
- Error Amount (Six months ended Dec 31, 2006): $67,000
- Nature of Error: Misclassification of excess tax benefits related to stock option exercises (APB 25) from operating activities to financing activities.
- Impact on Net Income/Assets: None. The correction has no effect on the condensed consolidated balance sheets or statements of operations.
Material Changes Versus Prior Period
The filing announces a restatement of the condensed consolidated statements of cash flows for the six months ended December 31, 2007, and 2006. The correction involves:
- Increasing net cash provided by operating activities.
- Reducing net cash provided by financing activities by the same amounts.
Previously filed Form 10-Q statements for these periods should no longer be relied upon.
Guidance, Outlook, and Risks
Internal Control Weakness: The Company expects to report a material weakness in internal control over financial reporting in the upcoming Form 10-Q/A. This weakness relates to the misclassification of amounts between operating, investing, and financing activities within the cash flow statements.
Management Action: The Audit Committee, upon management's recommendation, concluded the error required a restatement. Management and the Audit Committee have discussed these matters with the independent auditor, Deloitte & Touche LLP.
Investor Verification Checklist
- Verify the upcoming Form 10-Q/A for the corrected cash flow statements.
- Review the detailed disclosure of the material weakness in internal controls in the amended filing.
- Confirm that the restatement does not alter previously reported net income or total assets.
- Monitor future filings for remediation plans regarding the internal control deficiency.