Super Micro Computer hired a recent auditor Monday after its previous one, Ernst & Young, quit in the course of an engagement.
The Silicon Valley-based company, which touts a close relationship with AI stock-rocket Nvidia, had risked being delisted from the Nasdaq after failing to file each an annual and quarterly report on time. Its previous grace period with the exchange would have run out next week.
But after hiring BDO, Super Micro submitted a plan to Nasdaq to comply with exchange-listing rules and issue audited financials.
A spokesperson from Super Micro told Fortune in a press release: “As we previously disclosed, Supermicro intends to take all obligatory steps to attain compliance with the Nasdaq continued listing requirements as soon as possible.”
In a press release, Super Micro CEO Charles Liang welcomed its recent auditor, BDO USA, on Monday. “BDO is a highly respected accounting firm with global capabilities,” said Liang. “That is a crucial next step to bring our financial statements current, an effort we’re pursuing with each diligence and urgency.”
That comes after a blistering resignation letter from its former auditor last month.
EY wrote that it was not capable of depend on management and the board’s audit committee, which is purported to be made up of independent directors who oversee the corporate for the good thing about shareholders.
This isn’t Super Micro’s first rodeo. The corporate was delisted in 2018 before rejoining the tech-heavy Nasdaq stock exchange in 2020, where it soared 3,000% and eventually joined the Fortune 500.
Before it paused on issuing audited financial statements, its previous annual report showed gross profit margins had risen to 18% in fiscal 2023, in comparison with 15.4% in fiscal 2022, nevertheless it faced significant challenges. The worth of its inventory was $1.45 billion in 2023, and it had to extend its inventory reserves by $36.6 million. In a bleeding-edge competitive industry, the chance that a few of its inventory will likely be obsolete looms large.
BDO and Nasdaq didn’t immediately reply to a request for comment. An Nvidia spokesperson told Fortune the corporate is in a quiet period ahead of earnings and declined to comment.
This story was originally featured on Fortune.com