Super Micro (SMCI) Surges 29% as New Compliance Plan Sparks Hope for a Comeback
Super Micro Computer Inc. (NASDAQ: SMCI) shares jumped 29% in premarket trading after making moves to get back in good standing with Nasdaq. The company, known for its server and storage technology, announced it has hired BDO USA as its new independent auditor and submitted a plan to Nasdaq for catching up on overdue financial reports. This comes after its previous auditor, Ernst & Young, quit due to concerns about the company’s financial practices, which had raised serious doubts and hit its stock hard.
Super Micro plans to file its annual report for June 30, 2024, and a quarterly report for September 30, 2024, within the time allowed by Nasdaq. If the plan is approved, the company will stay listed on the exchange while sorting out its compliance issues. The announcement follows a rough year, including accusations of accounting issues by Hindenburg Research and lowered earnings forecasts. CEO Charles Liang says Super Micro is focused on regaining trust and fixing its reporting. While it remains to be seen if Nasdaq will accept the plan, investors are hopeful the company is on the path to a comeback.
