SMCI said its investigation also found no evidence that Supermicro directly sold export-controlled products to known restricted parties or locations.

  • Supermicro added that it found no evidence that its previously issued financial statements were unreliable because of potential product diversion.
  • The company said it took personnel actions involving employees in sales, technical support and business development, including terminations, for failing to follow company policies or its code of conduct.
  • Supermicro also adopted recommendations from the independent directors to further enhance its export compliance program.

Shares of Super Micro Computer Inc. (SMCI) gained on Thursday after the company said an independent investigation found no evidence that current senior management knew about an alleged export-control diversion scheme involving three former associates.

The investigation also found no evidence that Supermicro directly sold export-controlled products to known restricted parties or locations, or that its previously issued financial statements were unreliable because of potential product diversion.

Supermicro shares were up nearly 5% in Thursday’s opening trade. SMCI was among the top trending tickers on Stocktwits at the time of writing.

SMCI Takes Action Against Personnel, Expands Compliance Measures

Supermicro said it took personnel actions involving employees in sales, technical support and business development, including terminations, for failing to follow company policies or its code of conduct.

The company also adopted recommendations from the independent directors to further enhance its export compliance program. Some measures have already been implemented following an internal review overseen by the General Counsel and Chief Compliance Officer, while the independent directors will oversee the remaining recommendations.

“The independent directors support the actions the Company has already taken to bolster its internal policies and procedures, as well as the additional enhancements that will be implemented,” said Supermicro’s Lead Independent Director, Scott Angel.

What The Case Is About

Supermicro was informed in March this year that two employees and a contractor had been indicted over an alleged conspiracy to commit export-control violations. The company was not named as a defendant or accused of wrongdoing, and said the three individuals no longer have any relationship with Supermicro.

The U.S. Attorney’s Office for the Southern District of New York also charged Supermicro co-founder Yih-Shyan “Wally” Liaw in connection with the alleged diversion of Nvidia-powered servers to China. Liaw later resigned from Supermicro’s board, while the company maintained that it was not named as a defendant or accused of wrongdoing.

Supermicro has informed that the three individuals no longer have any relationship with the company. It also announced in May this year that its collaboration with Taiwanese authorities resulted in the arrest of three suspects.

What Retail Traders Think Of SMCI Stock

Retail sentiment on Stocktwits around Super Micro trended in the ‘neutral’ territory at the time of writing.

SMCI stock is up 31% year-to-date, but down 10% over the past 12 months. The S&P 500 ETF Trust (SPY) is up 20% over the past 12 months, while the Invesco QQQ Trust (QQQ) is up 26%.

The iShares Semiconductor ETF (SOXX) is up 115% during this period, while the iShares Russell Mid-Cap ETF (IWR) is up 20%.

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