MW Super Micro has a plan for its delayed reports, names new auditor; stock jumps
By Claudia Assis
Super Micro Computer Inc. late Monday said it gave Nasdaq a "compliance plan" to support its request for a filing extension to keep its listing, and announced a new auditor.
Super Micro shares $(SMCI)$ will remain listed pending the plan's review.
The company also said that BDO USA has been named its independent auditor, effective immediately.
"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," Chief Executive Charles Liang said in a statement.
The server maker has been under heightened scrutiny in the wake of a short seller's report in August and after the resignation of its auditor Ernst & Young earlier this month. EY said at the time it could not rely on management's representations.
Super Micro's stock has lost a quarter of its value this month and is down about 80% since it joined the the S&P 500 SPX in March. It rallied more than 17% in the extended session Monday after the news of the plan and new auditor.
The stock had been the S&P 500's best year-to-date performer from April to early August, riding a wave of enthusiasm for AI-related shares; it is down 24% in the year to date.
At the time of EY's resignation, Super Micro said it was expecting sales under investor expectations and that it was still unsure when it would file its latest annual report. The company formed a committee to look into its financial controls and said it had found no evidence of fraud or misconduct.
-Claudia Assis
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
November 18, 2024 17:16 ET (22:16 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
Comments