Beleaguered server maker staves off delisting, for now
Super Micro Computer Inc. late Monday said it gave Nasdaq a “compliance plan” to support its request for a filing extension in order to keep its listing, and announced a new auditor.
Super Micro shares SMCI15.93% will remain listed pending the plan’s review. The stock rallied about 40% in the extended session Monday after the news.
The company also said that BDO USA has been named its independent auditor, effective immediately.
“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,” Chief Executive Charles Liang said in a statement.
The server maker has been under heightened scrutiny in the wake of a short seller’s report in August and after the resignation of its auditor Ernst & Young earlier this month. EY said at the time it could not rely on management’s representations.
The company said it expects to be able to file its annual 10-K and the most recent quarterly 10-Q reports, becoming current, within a “discretionary period” that the Nasdaq could grant.
See also: Super Micro’s looming deadline fuels fear of delisting. Here’s what that means.
Super Micro’s stock has lost a quarter of its value this month and is down about 80% since it joined the the S&P 500 SPX0.39% in March. It rose 16% in the regular session Monday on hopes the plan would be filed.
The stock had been the S&P 500’s best year-to-date performer from April to early August, riding a wave of enthusiasm for AI-related shares, but it ended Monday’s regular session down 24% in the year to date.
At the time of EY’s resignation, Super Micro said it was expecting sales under investors’ expectations and that it was still unsure when it would file its latest annual report. The company formed a committee to look into its financial controls and said it had found no evidence of fraud or misconduct.