Super Micro Computer hired a new auditor Monday after the previous one, Ernst & Young, quit in the middle of an assignment.
The Silicon Valley-based company, which claims a close relationship with AI stock rocket Nvidia, was at risk of being delisted from the Nasdaq after failing to file both annual and quarterly reports on time. The previous grace period with the exchange was due to end next week.
But after hiring BDO, Super Micro filed a plan with Nasdaq to comply with listing rules and issue audited financials.
This is what a spokesperson for Super Micro said Fortune in a statement: “As we previously announced, Supermicro intends to take all necessary steps to comply with the Nasdaq requirements for continued listing as quickly as possible.”
In a statement Monday, Super Micro CEO Charles Liang welcomed his new accountant, BDO USA. “BDO is a highly respected accounting firm with global capabilities,” said Liang. “This is an important next step in bringing our financial statements current, an effort we are pursuing with both dedication and urgency.”
This comes after a blistering resignation letter from the former accountant last month.
EY writes that it can no longer rely on the board’s management and audit committee, which is supposed to consist of independent directors who oversee the company for the benefit of shareholders.
This isn’t Super Micro’s first rodeo. The company was taken private in 2018 before rejoining the tech-heavy Nasdaq stock exchange in 2020, where it rose 3,000% and eventually joined the Fortune 500.
Before the company stopped issuing audited financial statements, its previous annual report showed gross profit margins increased to 18% in fiscal 2023, compared to 15.4% in fiscal 2022, but the company faced significant challenges . The value of inventory reached $1.45 billion in 2023, and the company needed to increase its inventory reserves by $36.6 million. In a cutting-edge, competitive industry, there is a high risk that some inventory will be obsolete.
BDO and Nasdaq did not immediately respond to a request for comment. This is what an Nvidia spokesperson said Fortune The company is in a quiet period and ahead of earnings figures and declined to comment.
This story originally appeared on Fortune.com
