Charles Liang, CEO of Super Micro Computer Inc., during the Computex conference in Taipei, Taiwan, on Wednesday, June 5, 2024. The trade show runs through June 7.
Annabelle Cheh | Bloomberg | Getty Images
Beleaguered server maker Super micro computer On Monday, it said it had appointed BDO as its new auditor and submitted a plan to Nasdaq detailing its efforts to restore compliance with the exchange. Shares jumped 37% in extended trading.
“This is an important next step in modernizing our financial statements, and it is an effort we are pursuing with all seriousness and urgency,” Super Micro CEO Charles Liang said in a statement.
Super Micro was late in filing its 2024 final report with the Securities and Exchange Commission, and said earlier this month that it was searching for a new accountant after its previous auditor, Ernst & Young, resigned in October. Ernst & Young was new to the job, having just replaced Deloitte & Touche as Super Micro's accounting firm in March 2023.
Super Micro said it told Nasdaq that it believes it will be able to file its annual report for the year ending June 30, and its quarterly report for the period ending September 30. The company said it will remain listed on the Nasdaq stock exchange pending the stock exchange's decision. Review the compliance plan.”
Super Micro shares rose more than twenty-fold over two years from early 2022 until their peak in March of this year. But the stock has been under pressure due to troubling news about its compliance with the Nasdaq. The company's market cap, once worth about $70 billion, was $12.6 billion at Monday's close, after a 16% rise during regular trading.
Super Micro has been one of the major beneficiaries of the AI boom, due to its relationship with… Nvidia. Sales doubled last fiscal year to $15 billion.
Super Micro announced Monday that it is selling products containing Nvidia's next-generation artificial intelligence chip called Blackwell. The company competes with vendors such as Dale and Hewlett-Packard Company In packaging Nvidia AI chips for other companies to access.
Super Micro was added to the S&P 500 in March, reflecting its rapidly growing business and rising stock prices at the time. Less than two weeks after the index changes were announced, Super Micro reached its highest closing level of $118.81.
The problems started within months. In August, Super Micro said it would not file its annual report with the Securities and Exchange Commission on time. Popular short-seller Hindenburg Research subsequently uncovered a short position in the company, saying in a report that it had identified “new evidence of accounting manipulation.” The Wall Street Journal later reported that the Justice Department was in the early stages of investigating the company.
The month after announcing its report delay, Super Micro said it had received a notice from Nasdaq, indicating that a delay in filing its annual report meant the company was not in compliance with the exchange's listing rules. Super Micro said Nasdaq rules allowed the company 60 days to file its report or present a plan to regain compliance. Based on this time frame, the deadline was Monday.
Watch: Super Micro sale deal due to accounting violations
