Charles Liang, CEO of Super Micro Computer Inc., at the Computex conference in Taipei, Taiwan, Wednesday, June 5, 2024. The trade fair will last until June 7.
Annabelle Chih | Bloomberg | Getty Images
Server creator conflicting Super micro computer said on Monday that it has hired BDO as its new auditor and submitted a plan to Nasdaq outlining its efforts to restore compliance with the exchange. Shares rose 37% in extended trading.
“This is an important next step in our effort to update our financial statements, which we are undertaking diligently and urgently,” said Charles Liang, CEO of Super Micro. statement.
Super Micro is late to file its 2024 year-end report with the SEC and said earlier this month that it was looking for a new accountant after its previous auditor, Ernst & Young, stepped down in October. Ernst & Young was new at work, to have new replacement Deloitte & Touche as Super Micro’s accounting firm in March 2023.
Super Micro said it has told Nasdaq it believes it will be able to file its annual report for the year ended June 30, and its quarterly report for the quarter ended Sept. 30. compliance plan review’.
Super Micro’s stock rose more than twentyfold in the two-year period from early 2022 to its peak in March this year. But the stock has received troubling news about its Nasdaq filing. Once valued at around $70 billion, the company’s market cap was $12.6 billion at Monday’s close, after rising 16% in regular trading.
Super Micro has been one of the main beneficiaries of the artificial intelligence boom because of its relationship Nvidia. Last fiscal year sales doubled to $15 billion.
On Monday, Super Micro announced it was selling products with Nvidia’s next-generation AI chip called Blackwell. It competes with vendors like the company Dell and Hewlett Packard Enterprise When packaging Nvidia AI chips for access by other companies.
Super Micro was added to the S&P 500 in March, reflecting a fast-growing business and subsequent rise in share price. Less than two weeks after the index changes were announced, Super Micro reached a closing high of $118.81.
The problems started within a month. In August, Super Micro said it would not file its annual report with the SEC on time. Hindenburg Research then outlined a short position in the company, saying in a report that it had identified “new evidence of accounting manipulation.” The Wall Street Journal report later The Department of Justice was in the early stages of an investigation into the company.
A month after announcing the delay of the report, He said Super Micro It received a notice from Nasdaq, and the delay in filing its annual report meant the company was not in compliance with the exchange’s listing rules. Super Micro said Nasdaq rules gave the company 60 days to file its report or submit a plan to regain compliance. Based on that deadline, Monday was the deadline.
SEE: Super Micro is being sold due to accounting irregularities
