Shares of Super Micro soar as the server manufacturer announces that an internal review found no signs of wrongdoing

Super Micro Computer has stated that their newly conducted review found no proof of fraudulent activities or leadership misconduct. This comes after the resignation of their public accounting firm, Ernst & Young (EY), just a month ago. According to the tech company, they are also in search of a new Chief Financial Officer (CFO) and are expediting the appointment process of other executives.

These changes were suggested by the reviewing committee, formed a few months back. The formation of the committee was influenced by EY’s communication of concerns regarding transparency, management integrity, and internal controls related to financial reporting. It was these issues that led EY to discontinue their service as Super Micro’s public accountant, a decision the latter didn’t agree with.

The review committee, composed of board members and external counsel, concluded their investigation on Monday. The reports from this investigation contradicted EY’s allegations during its resignation, specifically stating there was no evidence of misconduct.

Super Micro, reassured by the review’s findings, does not plan to restate previous financial reports. Additionally, the company’s shares saw a significant surge of over 20% on Monday morning.

The company also revealed plans to appoint new management based on the review committee’s suggestions. Super Micro stated that it has started the search for a new CFO and plans on accelerating the search for a Chief Compliance Officer and General Counsel.

In other changes, Kenneth Cheung, who currently serves as the company’s Vice President of Finance and Corporate Controller, has been appointed as the Chief Accounting Officer.

Despite allegations of questionable accounting practices and a report from Hindenburg Research suggesting accounting manipulation, Super Micro continues to perform well. The company recently reported a more than 143% increase in fourth-quarter revenue, riding the surge of artificial intelligence developments.