Super Micro Stock Surges After Hiring New Auditor; Plans To Avoid Delisting

(RTTNews) - Shares of Super Micro Computer Inc. surged around 40 percent in the extended trading on The Nasdaq Stock Market after the troubled server maker announced that it has hired a new auditor and filed a compliance plan with the stock exchange, with a view to avoiding its delisting.

The plan was submitted to support its request for an extension of time to regain compliance with the Nasdaq continued listing requirements. Supermicro said its securities will remain listed pending Nasdaq's review of the compliance plan.

In a statement, the total IT solution provider for AI, Cloud, Storage, and 5G/Edge said the Audit Committee of its Board of Directors has engaged BDO USA, P.C., a member firm of BDO International, as its independent auditor, effective immediately.

Super Micro is late in filing its 2024 year-end report with the U.S. Securities and Exchange Commission after its auditor, Ernst & Young, stepped down in October after raising concerns related to governance, transparency and completeness of communications.

Following the news of EY's decision to resign, the company's shares had plunged significantly.

Earlier this month, the company said it was looking for a new auditor, so as to be able to complete its Annual Report filing.

In its compliance plan to Nasdaq, the company indicated that it would be able to file its annual report on Form 10-K for the year ended June 30, and its quarterly report on 10-Q for the first quarter ended September 30. The company also expects to become current with its periodic reports within the discretionary period available to the Nasdaq staff to grant.

Charles Liang, President and CEO of Supermicro, said, "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."

Super Micro, which is being benefited by the ongoing AI boom, has teamed with AI chipmaker Nvidia to sell products featuring Nvidia's next-generation AI chip called Blackwell.

In March, the company was added to the S&P 500, replacing Whirlpool Corp., reflecting its rapidly growing business and the significant growth in stock price.

Meanwhile, in August, Supermicro said it would not file its annual report with the SEC on time. During that time, short seller Hindenburg Research revealed that it had a short position in the server maker, citing evidence of "accounting manipulation".

Following the issues, reports said that the Department of Justice was initiating a probe into the company.

Amid the developments, Supermicro announced on September 20 that it received a notification letter from Nasdaq stating that the company was not in compliance with Nasdaq listing rule, which requires timely filing of reports.

As per Nasdaq's rules, the company was required to file its report or submit a plan to regain compliance within 60 days, and the deadline was on Monday.

On the Nasdaq, the shares gained around 16 percent on Monday's regular trading to close at $21.54. In the extended trading, the shares surged 39.8 percent to $30.11.

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