Super Micro Computer Names New Auditor and Seeks Compliance Extension

(Reuters) – Super Micro Computer on Monday named BDO USA as its auditor and announced it has submitted a plan to the Nasdaq seeking additional time to regain compliance with listing rules, causing its shares to soar 27% in extended trading.

In the compliance plan, the AI server maker stated it would complete its annual report for the year ended June 30 and its quarterly report ended Sept. 30, although no target date was provided.

> "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," said CEO Charles Liang.

Super Micro's stock started 2024 on a positive note, driven by Wall Street's optimism regarding AI-driven demand for its high-performance data center servers. This optimism was further bolstered by Super Micro's inclusion in the prestigious S&P 500 index.

The company's listing was jeopardized after it missed the August deadline for filing its annual 10-K report. This delay followed the day after Hindenburg Research revealed a short position and accused Super Micro of "accounting manipulation."

The company cited the need to evaluate "its internal controls over financial reporting" as the reason for the delay.

Super Micro's shares ended nearly 16% higher on Monday after a report earlier indicated that the company planned to submit a proposal to the Nasdaq.

Nasdaq regulations provided a grace period until mid-November to submit a remediation plan for compliance.

If approved, this could extend the deadline to February next year. However, analysts noted that the timeline seemed tight after EY resigned as Super Micro's auditor in October.

Pending a review of Super Micro's compliance plan, its shares will remain listed on the Nasdaq.