(Reuters) -Super Micro Computer on Monday named BDO USA as its auditor and said it has submitted a plan to the Nasdaq in search of additional time to regain compliance with the listing rules, sending its shares surging 25% in prolonged trading.
Within the compliance plan, the AI server maker said it would give you the chance to finish its annual report for the 12 months ended June 30 and its quarterly report ended Sept. 30, but didn’t give a goal date.
“BDO is a highly respected accounting firm with global capabilities. That is a vital next step to bring our financial statements current, an effort we’re pursuing with each diligence and urgency,” CEO Charles Liang said.
Super Micro’s listing got here under threat after it did not file its annual 10-K report by the August deadline, citing a necessity to evaluate “its internal controls over financial reporting” for the delay.
The move got here a day after Hindenburg Research disclosed a brief position and alleged “accounting manipulation”.
The corporate’s shares began 2024 on a high note, buoyed by Wall Street’s optimism over the AI-driven demand for its high-performance data center servers. This was reinforced by Super Micro’s inclusion in the distinguished S&P 500 index.
But since March, its shares have been squeezed by worries over competitive pricing and production ramp-ups which have hit profit margins. The selloff accelerated after the accounting issues, pushing the shares down greater than 24% this 12 months.
On Monday, Super Micro’s shares closed up nearly 16% after a report earlier within the day said the corporate intends on submitting a plan with the Nasdaq.
The Nasdaq regulations provided a grace period until mid-November to submit a remediation plan to regain compliance.
If approved, this might extend the deadline to February next 12 months. Nonetheless, analysts said the timeline gave the impression to be squeezed after EY resigned as Super Micro’s auditor in October.
Pending the review of Super Micro’s compliance plan, its shares will remain listed on the Nasdaq.
(Reporting by Akash Sriram and Zaheer Kachwala in Bengaluru; Editing by Arun Koyyur)