Super Micro Computer Takes Crucial Step Towards Compliance
In a bid to avoid being delisted from the Nasdaq, Super Micro Computer has appointed a new auditor, BDO USA, after its previous auditor, Ernst & Young, resigned mid-engagement. This move comes as a relief for the Silicon Valley-based company, which has been struggling to file its annual and quarterly reports on time.
Averting a Crisis
Super Micro’s previous grace period with the Nasdaq was set to expire next week, but the company has submitted a plan to comply with exchange-listing rules and issue audited financials. A spokesperson for Super Micro assured that the company intends to take all necessary steps to achieve compliance with the Nasdaq continued listing requirements as soon as possible.
Welcoming a New Partner
Super Micro CEO Charles Liang has welcomed BDO USA on board, praising the accounting firm’s global capabilities. Liang emphasized that this partnership is a crucial step in bringing the company’s financial statements up to date, an effort being pursued with diligence and urgency.
A History of Challenges
This is not Super Micro’s first brush with delisting. In 2018, the company was removed from the Nasdaq before rejoining in 2020, when it experienced a remarkable 3,000% surge in value. However, its previous annual report revealed significant challenges, including rising inventory values and the risk of inventory obsolescence in a highly competitive industry.
A Blistering Resignation
Ernst & Young’s resignation letter last month was scathing, citing the company’s inability to rely on management and the board’s audit committee. This lack of confidence has raised concerns about Super Micro’s ability to provide accurate and reliable financial information.
Moving Forward
With BDO USA on board, Super Micro is taking a crucial step towards regaining the trust of its investors and the Nasdaq. As the company navigates this challenging period, it remains to be seen whether it can overcome its obstacles and return to its former glory.
Leave a Reply