Auditors really dare to take it! Super Micro Computer soared 40% after hours
On November 18th, Super Micro Computer announced that it has hired BDO, the fifth largest accounting firm in the world, as its independent auditor and submitted a plan to Nasdaq that meets listing requirements. Following the announcement, Super Micro Computer's stock rose over 40% in after-hours trading
After a 76% plunge in stock price, Super Micro Computer has finally begun to address compliance issues.
On November 18th, Super Micro Computer announced that it has hired BDO, the fifth largest accounting firm in the world, as its independent auditor and submitted a plan to Nasdaq that meets listing requirements. This move satisfies Nasdaq's regulatory requirements for listed companies and enhances investor confidence in the company's future compliance.
Super Micro Computer expects to submit its annual report for the period ending June 30 and its quarterly report for the period ending September 30, and during Nasdaq's "compliance plan review" period, Super Micro Computer will continue to be listed on Nasdaq.
Super Micro Computer CEO Charles Liang stated in a statement:
"This is a key step in updating our financial statements to the latest status and is an effort we are driving with rigor and urgency."
Previously, in August, Super Micro Computer failed to submit its annual report for 2024 on time, and its former auditor, Ernst & Young, resigned in October.
Notable short seller Hindenburg Research subsequently disclosed Super Micro Computer's short positions and pointed out in its report that "new evidence of accounting manipulation has been found." The Wall Street Journal later reported that the U.S. Department of Justice is conducting a preliminary investigation into Super Micro Computer.
From early 2022 to March 2024, Super Micro Computer's stock price soared more than 20 times, but due to compliance issues, the stock price suffered a heavy blow, dropping over 76% in the past six months.
As of the time of publication, Super Micro Computer's stock rose 38.49% in after-hours trading, having previously surged over 40%.
