Tech Company Sees Resurgence Amid Delisting Concerns
Super Micro Computer Shares Soar on Anticipation of Submission Plan
Shares of Super Micro Computer (SMCI) surged in early trading on Monday, building on a recent rally as the tech company is expected to submit a plan to avoid being delisted from the Nasdaq stock exchange. This news comes as a welcome relief after months of turmoil surrounding the company’s accounting practices.
Accounting Concerns Weighed Heavily on Shares
Supermicro’s stock had taken a significant hit in recent months, plummeting over 80% from its March highs, amid concerns about the company’s accounting practices. The delayed filing of its annual report in August sparked fears of delisting, which were further fueled by a report from short seller Hindenburg Research accusing the company of “accounting manipulation” and other violations.
Nasdaq Deadline Looms
The company received a letter from the Nasdaq on September 17, informing it of a 60-day deadline to file the late report. With the deadline fast approaching, Supermicro announced earlier this month that it was still unable to predict when it would file the delayed annual report.
New Auditor Hired to Review Results
In an effort to address these concerns, Supermicro has hired a new auditor to review its results, following the resignation of accounting firm EY. This move comes as the company prepares to submit its official first-quarter results, which are also expected to be delayed.
Monday’s Rally a Positive Sign
Despite the challenges faced by Supermicro, Monday’s rally is a positive sign for investors. The company’s shares were up over 18% after the market opened, indicating a renewed sense of confidence in the company’s ability to address its accounting concerns and avoid delisting.
A Long Road Ahead
While Monday’s gains are a welcome development, Supermicro still faces significant challenges in the coming months. The company must work to restore investor confidence and address the concerns surrounding its accounting practices. Only time will tell if Supermicro can overcome these hurdles and regain its footing in the market.
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