(Bloomberg) — Shares of Super Micro Computer Inc. rose as much as 30% in extended trading after the company hired a new accountant and filed a plan to comply with Nasdaq listing requirements.
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The server maker said it had filed a plan with the Nasdaq stock exchange to file its 10-K financial disclosure report, which was postponed in August. The company also announced that it has appointed BDO USA as its independent auditor, effective immediately.
“In its compliance plan to Nasdaq, the company indicated that it believes it will be able to complete its Annual Report on Form 10-K for the year ended June 30, 2024, and its Quarterly Report on 10-Q for the fiscal quarter. ended September 30, 2024 and will become current with its periodic reports within the discretionary period that Nasdaq staff may grant,” Super Micro said in a statement on Monday.
If Super Micro’s plan is accepted by the exchange, the new deadline for the document will likely be pushed back to February. It will be able to remain listed on the Nasdaq until a final decision is made on its compliance. If a plan is not approved, the company can appeal the decision.
Super Micro’s previous auditor, Ernst & Young LLP, resigned in October over concerns about the company’s transparency and governance. Ernst & Young is one of the Big Four accounting firms, the accountants who audit the books of the largest companies in the world. According to Inside Public Accounting, BDO USA is the sixth largest accountant by revenue. According to Bloomberg data, the company only has one other S&P 500 company as a client.
Finding an accountant is a “big step” for them, even if it’s not one of the Big Four firms, Matt Bryson, an analyst at Wedbush, said in an interview. “This is a positive step in terms of presenting a plan to Nasdaq and, at least from their perspective, hopefully being able to submit their financials and resolve these issues.”
Having a new accountant and a plan to return to compliance with Nasdaq listing rules is the latest update in a tumultuous few months for Super Micro, which had found favor with investors earlier this year as a potential beneficiary of demand for artificial -intelligence services. The San Jose, California-based company delayed filing its annual 10-K after a damaging report from short seller Hindenburg Research, and said last week it would be late with quarterly reports.
