(Reuters) – Super Micro Computer appointed BDO USA as auditor on Monday and said it has filed a plan with the Nasdaq to request additional time to return to compliance with listing rules, sending its shares up 27% in extended trading .
In its compliance plan, the AI server maker said it could complete its annual report for the year ended June 30 and its quarterly report ended September 30, but did not provide a target date.
“BDO is a highly respected accounting firm with global capabilities. This is an important next step in bringing our financial statements current, an effort we are pursuing with both dedication and urgency,” said CEO Charles Liang.
The company’s shares started 2024 on a high note, buoyed by Wall Street’s optimism about AI-driven demand for its powerful data center servers. This was reinforced by Super Micro’s inclusion in the prestigious S&P 500 index.
Super Micro’s stock market listing was in jeopardy after it failed to file its annual 10-K report by the August deadline. The postponement came a day after Hindenburg Research disclosed a short position and alleged “accounting manipulation”.
It had cited the need to assess “its internal controls over financial reporting” because of the delay.
Shares of Super Micro closed down nearly 16% on Monday after a report earlier in the day said the company plans to file a plan with the Nasdaq.
The Nasdaq regulations provided a grace period until mid-November to submit a recovery plan to return to compliance.
If approved, the deadline could be extended until February next year. However, analysts said the timeline appeared to be under pressure after EY resigned as Super Micro’s auditor in October.
Pending the review of Super Micro’s compliance plan, its shares will remain listed on Nasdaq.
(Reporting by Akash Sriram and Zaheer Kachwala in Bengaluru; Editing by Arun Koyyur)
