Super micro computer hired a new auditor on Monday after the previous one, Ernst & Young, leave in the middle of an engagement.
Companies based in Silicon Valley, a close relationship AI with stock rocket Nvidiahe was in danger of being removed from the list Nasdaq after not submitting the annual and quarterly report on time. The grace period before the exchange was to end next week.
But after hiring BDO, Super Micro submitted a plan to Nasdaq to comply with exchange listing rules and submit to a financial audit.
A Super Micro spokesperson said luck in a statement: “As we previously reported, Supermicro intends to take all necessary steps to comply with Nasdaq’s continuous listing requirements as soon as possible.”
In a statement, Super Micro CEO Charles Liang welcomed BDO USA as its new auditor on Monday. “BDO is a highly respected accounting firm with global capabilities,” Liang said. “This is an important next step in updating our financial statements, which we are undertaking diligently and urgently.”
This follows a shocking resignation letter from its former auditor last month.
EY he wrote that it was no longer possible to rely on the management and the audit committee of the board, which is said to be made up of independent directors who oversee the company for the benefit of the shareholders.
This isn’t Super Micro’s first rodeo. The company was delisted in 2018 before re-listing on the Nasdaq tech stock market in 2020, where it rose 3,000% and eventually entered the Fortune 500.
Before it stopped issuing audited financial statements, its previous annual report showed that gross profit margins rose to 18% in fiscal 2023, up from 15.4% in fiscal 2022, but faced significant challenges. The value of its inventory was $1.45 billion in 2023, and it had to increase its inventory reserves by $36.6 million. In a highly competitive industry, the risk of some of its inventory becoming obsolete is high.
BDO and Nasdaq did not immediately respond to a request for comment. An Nvidia spokesperson said luck the company is in a quiet period ahead of earnings and declined to comment.
