Super Micro Computer Inc (NASDAQ:SMCI) shares rallied on Tuesday on the news the IT firm has appointed BDO as its new auditor and filed a compliance plan with the Nasdaq.
The company’s stock has slumped since the resignation of its previous auditor Ernst & Young in October, citing concerns about governance transparency and internal controls over financial reporting.
This resulted in delays in the company filing its annual report for the year ending June 30, 2024, and September quarter report, and in turn, Super Micro received a notice of non-compliance from the Nasdaq.
Super Micro said that per its submitted compliance plan to the Nasdaq it is seeking an extension to meet the exchange’s listing requirements.
It expressed confidence in its ability to complete its Annual Report on Form 10-K for the fiscal year ending June 30, 2024, and its Quarterly Report on Form 10-Q for the quarter ending September 30, 2024, ensuring compliance with periodic reporting obligations within the timeframe Nasdaq staff may allow.
Super Micro will remain listed on the Nasdaq pending the exchange’s review of its compliance plan.
“We are pleased to welcome BDO as Super Micro’s independent auditor,” CEO Charles Liang said in a statement.
“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.”
Shares of Super Micro added 28.6% at about $27 on Tuesday morning, but remain down from about $49 in October before the resignation of its previous auditor.