Super Micro Computer stock keeps going up after 11th-hour bid to avoid Nasdaq delisting
Shares of Super Micro Computer are set to see their second day of double-digit gains on Tuesday after the storage tech giant announced that it has submitted a list-minute bid to regain compliance with the Nasdaq stock exchange. In a late Monday press release, the company said it has hired accounting firm BDO as its independent auditor and now expects to be able to complete financial documents necessary to stay on the exchange. This follows the abrupt resignation of its previous auditor, EY, which in October said it had lost confidence in Supermicro’s financial statements. In the wake of EY’s resignation, Supermicro has been delinquent in certain filings to the Securities and Exchange Commission (SEC). It was warned by Nasdaq in September that it had 60 days to rectify the situation. Without a proper compliance plan, the company risked being delisted from the exchange. But on Monday, Supermicro expressed confidence that it would avoid such a dramatic outcome, saying it now expects to complete the necessary filings “within the discretionary period available to the Nasdaq staff to grant.” In the meantime, the company said it will remain on the exchange pending Nasdaq’s review of its compliance plan. Following an August report from short-selling firm Hindenburg Research—which alleged serious accounting irregularities at Supermicro—shares in the company cratered, falling from around $56 in late August to a low of $17.25 this month. However, investors now appear to be betting that the worst is over. In premarket trading on Tuesday, Supermicro stock (Nasdaq: SMCI) was up more than 25% following news of its compliance plan and new auditing firm. The stock had already risen almost 16% on Monday after Supermicro indicated to reporters that it would submit the plan before the deadline. “We are pleased to welcome BDO as Supermicro’s independent auditor,” Charles Liang, Supermicro’s president and CEO said in a statement Monday. “BDO is a highly respected accounting firm with global capabilities. This is an important next step to bring our financial statements current, an effort we are pursuing with both diligence and urgency.”
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Shares of Super Micro Computer are set to see their second day of double-digit gains on Tuesday after the storage tech giant announced that it has submitted a list-minute bid to regain compliance with the Nasdaq stock exchange.
In a late Monday press release, the company said it has hired accounting firm BDO as its independent auditor and now expects to be able to complete financial documents necessary to stay on the exchange. This follows the abrupt resignation of its previous auditor, EY, which in October said it had lost confidence in Supermicro’s financial statements.
In the wake of EY’s resignation, Supermicro has been delinquent in certain filings to the Securities and Exchange Commission (SEC). It was warned by Nasdaq in September that it had 60 days to rectify the situation. Without a proper compliance plan, the company risked being delisted from the exchange.
But on Monday, Supermicro expressed confidence that it would avoid such a dramatic outcome, saying it now expects to complete the necessary filings “within the discretionary period available to the Nasdaq staff to grant.”
In the meantime, the company said it will remain on the exchange pending Nasdaq’s review of its compliance plan.
Following an August report from short-selling firm Hindenburg Research—which alleged serious accounting irregularities at Supermicro—shares in the company cratered, falling from around $56 in late August to a low of $17.25 this month.
However, investors now appear to be betting that the worst is over.
In premarket trading on Tuesday, Supermicro stock (Nasdaq: SMCI) was up more than 25% following news of its compliance plan and new auditing firm. The stock had already risen almost 16% on Monday after Supermicro indicated to reporters that it would submit the plan before the deadline.
“We are pleased to welcome BDO as Supermicro’s independent auditor,” Charles Liang, Supermicro’s president and CEO said in a statement Monday. “BDO is a highly respected accounting firm with global capabilities. This is an important next step to bring our financial statements current, an effort we are pursuing with both diligence and urgency.”
