SUPER MICRO COMPUTER INC (SMCI) stock soared 39.74% on Monday, driven by the company's move to submit a compliance plan to Nasdaq to avoid potential delisting over delayed financial filings.
SMCI had been facing mounting challenges, including failing to file its annual report on time in August, prompting Nasdaq to issue a delisting warning in September. The company was given a 60-day deadline until November 16th to either file the delayed report or submit a plan to regain compliance.
On Monday, November 18th, reports emerged that SMCI intends to submit a compliance plan to Nasdaq by the deadline, outlining steps to address the regulatory concerns and file the overdue reports. The company also announced the appointment of BDO USA as its new independent auditor, replacing Ernst & Young which had resigned earlier.
The compliance plan submission and the new auditor appointment provided a much-needed boost to investor confidence, as SMCI's stock had plunged around 80% from its March highs amid concerns over accounting issues, delayed filings, and auditor resignation.
If Nasdaq accepts SMCI's compliance plan, the company will likely be granted an extension to regain compliance, averting the immediate threat of delisting. This development offers SMCI a chance to resolve its financial reporting problems and reclaim its position as a leading player in the booming AI computing market.
