Super Micro Computer's Stock Rises 30% On Reports Of New Auditor
Date
11/23/2024 6:42:06 AM
(MENAFN- Baystreet)
The stock of Super Micro Computer (SMCI) is up 30% on reports that the server maker has hired new auditor BDO to help it avoid its stock being delisted from the nasdaq exchange.
Multiple media reports say that Super Micro Computer has also submitted a plan to Nasdaq outlining how it plans to regain compliance with the stock exchange.
Super Micro is late in filing both its fiscal 2024 annual report with the U.S. Securities and Exchange Commission (SEC), and documents that support its third-quarter earnings report.
The company also needed to hire a new auditor after Ernst & Young resigned from that job in October of this year.
Ernst & Young had replaced Deloitte & Touche, which resigned as Super Micro Computer's accounting firm in March 2023.
Super Micro Computer is in the midst of an accounting scandal that began this past summer when infamous short seller Hindenburg Research accused the company of malfeasance.
While Super Micro Computer has denied wrongdoing, it has delayed filing needed accounting documents and its auditors have resigned amid harsh criticism of the company.
The current situation has led to a sharp selloff in Super Micro Computer's stock. It's a sharp reversal for a company whose share price rose twentyfold over a two-year period.
But now, Super Micro Computer says that it believes it can file its annual report for the year ended June 30, and quarterly report for the period ended Sept. 30, and remain on the Nasdaq.
Super Micro Computer's stock was added to the S&P 500 index in March of this year due to the then meteoric rise in its share price.
Prior to today (Nov. 19), Super Micro Computer's stock was down 25% on the year and trading at $21.54 U.S. a share. The stock had fallen 55% in the last month.
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