Super Micro Computer plummets as auditor resigns
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Super Micro Computer (NASDAQ:SMCI) shares plunged nearly 33% on Wednesday after the auditor for the artificial intelligence server maker resigned.
Ernst & Young LLP sent the members of the audit committee of the board of directors a letter of resignation on October 24, Super Micro said in a filing.
“Although the Company recognizes EY’s decision is final, it disagrees with EY’s decision to resign as the Company’s independent registered public accounting firm – the Special Committee has not yet obtained all information relevant for the Review and has not concluded the Review,” Super Micro said in the filing. “Nevertheless, the Company has taken the concerns expressed by EY seriously, and will carefully consider the findings of the Special Committee and any remedial or other actions recommended by the Special Committee following conclusion of the Review.”
Super Micro said the chair of the audit committee discussed the reasons for EY’s resignation and has started to look for a successor independent registered public accounting firm.
The Charles Liang-led company added it “does not currently expect that resolution of any of the matters raised by EY, or under consideration by the Special Committee, as noted below, will result in any restatements of its quarterly reports for the fiscal year 2024 ending June 30, 2024, or for prior fiscal years.”
Concerns about the company’s financial statements cropped up in late August, when Hindenburg Research issued a report that it was short Super Micro’s shares. A day later, Super Micro said it was delaying its annual 10-K filing. The company later said that it does not expect any material changes to fiscal 2024.
Liang wrote a letter in September to the company’s customers and partners and said neither the short report nor the delay in the annual report would impact them.
That same month, the Department of Justice started an investigation into the company.
(This story has been updated with closing price and additional information.)