Super Micro Stock Soars 30% As AI Server Maker Hires New Auditor, Submits Compliance Plan To Avert Delisting: Retail Cheers
By Stocktwits Inc | First Published Nov 19, 2024, 5:14 PM ISTSuper Micro has appointed BDO US, P.C., one of the world’s top five accounting firms, as its new auditor.
Super Micro Computer, Inc. ($SMCI) shares blasted higher in Tuesday's premarket session after the artificial intelligence server maker announced plans to tide over its recent headwinds.
San Jose, California-based Super Micro said the audit committee of its board has appointed BDO US, P.C. as its independent auditor, effective immediately. The company noted that its new auditor is one of the world’s top five accounting firms and is recognized in audit and assurance.
Latest Videos
Ernst & Young (EY) resigned as Super Micro's auditor in late-October, citing concerns over internal controls, board independence and accounting practices. Following the development, the board appointed an independent special committee to investigate the matters raised by EY.
While announcing preliminary third-quarter results in early November, Super Micro said the special committee gave a clean chit to the board’s audit committee following a three-month long investigation.
Last week, Super Micro said the committee has completed its investigation but is engaged in other ongoing work.
Super Micro also faced the threat of its shares being delisted from Nasdaq if it failed to meet the Nov. 16 deadline for filing its annual report for the fiscal year 2024 that ended on June 30.
Amid the auditor's resignation, it was not able to file its quarterly report for the September quarter on Form 10-Q in a timely manner.
Late Monday, the company said it has submitted a compliance plan to the Nasdaq to support its request for an extension of time to regain compliance with the Nasdaq listing standards.
The company said it believes it will be able to complete filing of its annual and quarterly reports and become current with its periodic resorts within the "discretionary period available to the Nasdaq staff to grant."
The shares will remain listed, pending a review of the plan by Nasdaq, it added.
Super Micro shares sank to a 18-month low of $17.25 on Friday amid the headwinds before rebounding on Monday The recovery came on the back of the company's disclosure late-Friday that three broker-dealers with common ownership acquired 30.83 million shares of the company, translating to a 5.3% stake.
In premarket trading on Tuesday, as of 6:32 am ET, Super Micro shares rose 29.11% to $27.81. If the gains are sustained in regular trading, the stock could open at the highest level since Nov. 1.
Super Micro was the top-trending stock on Stocktwits early Tuesday, with the highest message volume, as retail cheered the development.
A Stocktwits user flagged the likelihood of the stock returning to pre-crisis levels.
Another raised the possibility of shorts getting obliterated. About 16.23% of the outstanding shares are currently shorted, according to Yahoo Finance.
subscribe to Asianet Newsable WhatsApp channel by clicking here. For more reliable and latest news
subscribe to Asianet Newsable Telegram channel by clicking here.