Super Micro Computer Stock Soars 31% as Special Committee Clears Accounting Concerns
Staff Editor Super Micro Computer Stock Surges 31% Following Accounting Review
Super Micro Computer’s stock experienced a significant boost on Monday, rising 31% following the release of a special committee’s review that found no evidence of accounting misconduct. The surge comes as a relief for the company, which has been under scrutiny due to accounting procedure concerns since the resignation of its previous auditor in October.
The review, conducted by a special committee including Cooley LLP and Secretariat Advisors, was initiated after Ernst & Young (EY) raised concerns in July. EY subsequently resigned in October, citing issues with the board’s governance and independence. However, the committee’s investigation concluded that EY’s concerns were unfounded.
Despite Monday’s rally, Super Micro’s stock has faced significant challenges in recent months. After reaching a record high of $119 per share in March, the stock plummeted 84% to a low of $18 last month. This decline was largely attributed to accounting procedure issues highlighted by Hindenburg Research, which held a short position in the company and cited evidence of manipulation.
Adding to the company’s woes, The Wall Street Journal reported in September that the Department of Justice had launched a probe into Super Micro. These developments raised concerns about potential delisting from Nasdaq due to late SEC filings.
In response to these challenges, Super Micro hired BDO as a new auditor and submitted a compliance plan to Nasdaq. The company was given 60 days to file its report or submit a plan to regain compliance, which has helped avoid immediate delisting pending Nasdaq’s review.
The special committee’s findings have bolstered investor confidence, and approval of Super Micro’s compliance plan could extend the filing deadline to February. As the company works to address these issues, investors and industry observers will be closely watching Super Micro’s progress in the coming months.
