Super Micro Computer Shares Soar on New Auditor Appointment
Monday’s evening trading session saw a significant surge in Super Micro Computer Inc (NASDAQ:SMCI) shares, driven by the company’s announcement of BDO USA as its new auditor. The server maker’s stock price jumped an impressive 36% to $29.30 by 18:32 ET (23:32 GMT).
A Crucial Step Forward
The appointment of BDO USA marks a critical step in Super Micro’s efforts to bring its financial statements up to date. According to President and CEO Charles Liang, “BDO is a highly respected accounting firm with global capabilities. This is an important next step to bring our financial statements current, an effort we are pursuing with both diligence and urgency.”
Regaining Compliance
Super Micro has submitted a plan to the Nasdaq, seeking an extension to comply with listing rules. Although the company did not provide a specific timeline for completing its annual and quarterly reports, it expressed confidence in its ability to do so.
Rebuilding Trust
The news comes as a welcome relief for Super Micro, which faced significant challenges in October. The resignation of Ernst&Young as the company’s auditor, citing concerns over internal controls and board independence, led to a sharp decline in shares. Additionally, Super Micro was reportedly under federal investigation over a short seller report and had delayed filing its 2024 financial reports.
A New Chapter
With BDO USA on board, Super Micro appears to be taking concrete steps towards regaining compliance and rebuilding trust with investors. As the company navigates this critical phase, its ability to file timely and accurate financial reports will be closely watched by the market.
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