Super Micro Takes Major Step Towards Regaining Compliance
New Auditor Hired, Plan Submitted to Nasdaq
Embattled server maker Super Micro Computer has made significant progress in its efforts to regain compliance with Nasdaq. The company has hired BDO as its new auditor and submitted a plan to the exchange, detailing its steps to bring its financial statements up to date. This move has sent Super Micro’s shares soaring 16% in extended trading.
CEO Liang: “Urgent Efforts” to Regain Compliance
“This is a crucial next step in our journey to bring our financial statements current,” said Super Micro CEO Charles Liang in a statement. “We are working diligently and with urgency to achieve this goal.” The company has been struggling to file its 2024 year-end report with the SEC, and has been searching for a new accountant since its previous auditor, Ernst & Young, stepped down in October.
A New Chapter for Super Micro
Ernst & Young had only recently taken over as Super Micro’s accounting firm in March 2023, replacing Deloitte & Touche. The company believes it will be able to file its annual report for the year ended June 30, and quarterly report for the period ended Sept. 30. Super Micro will remain listed on the Nasdaq pending the exchange’s review of its compliance plan.
From Boom to Bust: Super Micro’s Rollercoaster Ride
Super Micro’s shares had skyrocketed more than 14-fold from the end of 2022 to their peak in March of this year, thanks in part to its relationship with Nvidia and the artificial intelligence boom. However, the stock has taken a hit due to concerns over its compliance with Nasdaq. The company’s market cap, once valued at around $70 billion, had dropped to $12.6 billion on Monday before the 16% rally during regular trading.
Nvidia Partnership Boosts Sales
Super Micro has been one of the primary beneficiaries of the AI boom, with sales last fiscal year more than doubling to $15 billion. The company has announced that it will be selling products featuring Nvidia’s next-generation AI chip, Blackwell. This partnership is expected to continue driving growth for Super Micro.
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