Super Microcomputer hired a new auditor on Monday after its previous one, Ernst & Young, quit amid a busy schedule.
The Silicon Valley-based company, which claims close ties to AI stock rocket Nvidia, had risked delisting from Nasdaq after failing to file both annual and quarterly reports on time. His earlier concession period with the exchange will expire next week.
But after hiring BDO, SuperMicro submitted a plan to Nasdaq to comply with exchange listing rules and issue audited financials.
A spokesperson for Super Micro said good luck In a statement: “As we previously disclosed, Supermicro intends to take all necessary steps to meet Nasdaq’s ongoing listing requirements as soon as possible.”
In a statement, Super Micro CEO Charles Liang welcomed its new auditor BDO USA on Monday. “BDO is a highly respected accounting firm with global capabilities,” Liang said. “This is an important next step in bringing our financial statements current, an effort we are pursuing with both due diligence and urgency.”
This comes after a leaked resignation letter from its former auditor last month.
EY wrote that he was no longer able to trust management and the audit committee of the board, which should be composed of independent directors who oversee the company for the benefit of shareholders.
This isn’t Super Micro’s first rodeo. The company was delisted in 2018 before rejoining the tech-heavy Nasdaq stock exchange in 2020, where it surged 3,000 percent and eventually joined the Fortune 500.
Before it paused to release audited financial statements, its last annual report showed that gross profit margin had increased to 18% in fiscal 2023, from 15.4% in fiscal 2022. , but it faced significant challenges. Its inventory was worth $1.45 billion in 2023, and it had to add $36.6 million to its inventory reserves. In a hemorrhagingly competitive industry, the risk of some of its inventory becoming obsolete is high.
BDO and Nasdaq did not immediately respond to a request for comment. An Nvidia spokesperson said good luck The company is in a quiet period before earnings and declined to comment.
