Super Micro Computer Shares Surge 30% After Naming New Auditor and Submitting Compliance Plan
In a dramatic turnaround, Super Micro Computer’s stock price skyrocketed over 30% on Tuesday, following the company’s announcement that it has appointed BDO as its new auditor and submitted a plan to Nasdaq detailing its efforts to regain compliance with the exchange.
A Long-Awaited Move
The move comes after Super Micro’s previous auditor, Ernst & Young, stepped down in October, leaving the company scrambling to find a new accounting firm. This development is a significant step forward for the embattled server maker, which has been struggling to regain compliance with Nasdaq’s listing rules.
Regaining Compliance
Super Micro’s plan, submitted to Nasdaq on Monday, outlines the company’s efforts to file its annual report for the year ended June 30 and quarterly report for the period ended September 30. While the company remains listed on the Nasdaq pending the exchange’s review of the compliance plan, analysts at Mizuho estimate that the approval process could take anywhere from two to five weeks.
A Promising Future
Despite the challenges it has faced, Super Micro’s future looks promising. The company has been a primary beneficiary of the artificial intelligence boom, thanks to its relationship with Nvidia. With sales more than doubling to $15 billion last fiscal year, Super Micro is poised for continued growth. The company’s recent announcement that it is selling products featuring Nvidia’s next-generation AI chip, Blackwell, is a testament to its commitment to innovation.
Overcoming Challenges
Super Micro’s journey has not been without its challenges. The company’s troubles began in August when it announced that it would not file its annual report with the SEC on time. This led to a short seller disclosing a short position in the company, citing accounting manipulation. The Department of Justice also launched a probe into the company, further complicating matters.
A New Chapter
However, with the appointment of BDO as its new auditor and the submission of its compliance plan, Super Micro appears to be turning a corner. The company’s stock price has climbed over 50% in the last two trading days, reflecting investor optimism about its future prospects. As Super Micro works to regain compliance with Nasdaq, it is clear that the company is committed to transparency and accountability.
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