Super Micro Computer Takes Crucial Step Towards Regaining Compliance
Shares of Super Micro Computer surged 25% in extended trading on Monday after the company announced a significant development in its efforts to regain compliance with Nasdaq listing rules.
New Auditor Appointment Marks Important Milestone
The AI server maker has appointed BDO USA as its new auditor, a move that CEO Charles Liang described as an “important next step” in bringing the company’s financial statements up to date. Liang emphasized that BDO is a highly respected accounting firm with global capabilities, and that the company is pursuing this effort with both diligence and urgency.
Compliance Plan Submitted to Nasdaq
Super Micro has submitted a plan to the Nasdaq seeking additional time to regain compliance with listing rules. While the plan does not provide a specific target date, it outlines the company’s intention to complete its annual report for the year ended June 30 and its quarterly report ended September 30.
Regaining Compliance: A Critical Step Forward
Super Micro’s listing came under threat after it failed to file its annual 10-K report by the August deadline, citing a need to assess its internal controls over financial reporting. The company’s shares have been under pressure since March, with concerns over competitive pricing and production ramp-ups impacting profit margins.
Market Optimism Returns
Monday’s announcement brought a much-needed boost to Super Micro’s shares, which closed up nearly 16% after a report earlier in the day indicated the company’s intention to submit a plan to the Nasdaq. The company’s inclusion in the prestigious S&P 500 index had initially driven optimism, with Wall Street bullish on the AI-driven demand for its high-performance data center servers.
Nasdaq Regulations Provide Breathing Room
Under Nasdaq regulations, Super Micro has until mid-November to submit a remediation plan to regain compliance. If approved, this could extend the deadline to February next year. While analysts have expressed concerns over the tight timeline, particularly following the resignation of EY as Super Micro’s auditor in October, the company’s shares will remain listed on the Nasdaq pending the review of its compliance plan.
Leave a Reply