Super Micro Computer Inc., a server manufacturer, has recently appointed BDO as its new auditor in an effort to regain compliance with the Nasdaq exchange. This decision comes after the company fell behind in filing its 2024 year-end report with the SEC and its previous auditor, Ernst & Young, stepped down in October. The shares of Super Micro surged by 37% in extended trading following this announcement.
CEO Charles Liang emphasized the importance of bringing the company’s financial statements up to date with both diligence and urgency. Super Micro informed Nasdaq that it is working towards filing its annual report for the year ended June 30 and the quarterly report for the period ended September 30. As a result, the company will continue to be listed on Nasdaq while the exchange reviews its compliance plan.
Super Micro’s stock price had experienced a significant increase over the past two years, largely attributed to its involvement in the artificial intelligence sector through its partnership with Nvidia. Despite reaching a market cap of $70 billion at one point, the company’s value has decreased to $12.6 billion as of Monday’s closing. This decline was partly due to concerns over compliance issues with Nasdaq.
In an attempt to boost its business, Super Micro announced the sale of products featuring Nvidia’s next-generation AI chip, Blackwell. The company competes with industry giants like Dell and Hewlett Packard Enterprise in providing access to Nvidia AI chips for other businesses.
Super Micro’s inclusion in the S&P 500 index earlier this year reflected its rapid growth and rising stock price. However, challenges arose when the company failed to file its annual report on time, leading to accusations of accounting manipulation by short seller Hindenburg Research. Additionally, reports surfaced regarding a Department of Justice probe into the company’s practices.
Despite these setbacks, Super Micro remains determined to address its compliance issues and move forward with its business objectives. The appointment of BDO as its new auditor marks a significant step towards achieving regulatory compliance and restoring investor confidence in the company.
