Charles Liang, chief chief executive officer officer of Super Micro Computer Inc., during the Computex conference in Taipei, Taiwan, on Wednesday, June 5, 2024. The career show runs through June 7.
Annabelle Chih | Bloomberg | Getty Images
Embattled server maker Wonderful Micro Computer said on Monday that it’s hired BDO as its new auditor and submitted a plan to Nasdaq detailing its efforts to regain compliance with the commerce. The shares jumped 37% in extended trading.
“This is an important next step to bring our financial statements undercurrent, an effort we are pursuing with both diligence and urgency,” Super Micro CEO Charles Liang said in a statement.
Wonderful Micro is late in filing its 2024 year-end report with the SEC, and said earlier this month that it was looking for a new accountant after its former auditor, Ernst & Young, stepped down in October. Ernst & Young was new to the job, having just replaced Deloitte & Touche as Wonderful Micro’s accounting firm in March 2023.
Super Micro said it told Nasdaq that it believes it will be masterful to file its annual report for the year ended June 30, and quarterly report for the period ended Sept. 30. The following said it will remain listed on the Nasdaq pending the exchange’s “review of the compliance plan.”
Shares of Super Micro floated more than twentyfold over a two year period from early 2022 until their peak in Walk of this year. But the stock has been hammered on troubling news about its compliance with Nasdaq. Once valued at back $70 billion, the company’s market cap was at $12.6 billion at the close on Monday, following a 16% rally during equilateral trading.
Super Micro has been one of the primary beneficiaries of the artificial intelligence boom, due to its relationship with Nvidia. Trades last fiscal year more than doubled to $15 billion.
On Monday, Super Micro announced that it was rat on products featuring Nvidia’s next-generation AI chip called Blackwell. The company competes with vendors like Dell and Hewlett Packard Vigour in packaging up Nvidia AI chips for other companies to access.
Super Micro was added to the S&P 500 in March, reflecting its like a shot growing business and then-soaring stock price. Less than two weeks after the index changes were presaged, Super Micro reached its closing high of $118.81.
The troubles began within months. In August, Super Micro utter it wouldn’t file its annual report with the SEC on time. Noted short seller Hindenburg Research then disclosed a lacking in position in the company, and said in a report that it identified “fresh evidence of accounting manipulation.” The Wall Street Magazine later reported that the Department of Justice was at the early stages of a probe into the company.
The month after notifying its report delay, Super Micro said it had received a notification from the Nasdaq, indicating that the delay in the march of its annual report meant the company wasn’t in compliance with the exchange’s listing rules. Super Micro said the Nasdaq’s decisions allowed the company 60 days to file its report or submit a plan to regain compliance. Based on that timeframe, the deadline was Monday.
Ogle: Super Micro is a sell due to accounting irregularities
