After-hours surge of 30%! Super Micro Computer, Inc. (SMCI.US) launches a strong counterattack: new auditor on board, compliance plan unveiled.

Super Micro Computer, Inc. (SMCI.US) saw its stock price soar by 30% after hiring BDO USA as its new auditor and submitting a plan to regain compliance for listing on the NASDAQ. The company's previous auditor, Ernst & Young, resigned over concerns about transparency and governance, leading to a delay in its August 10-K financial disclosure report. Super Micro Computer, Inc. has now submitted a compliance plan to NASDAQ with the aim of timely completing and submitting annual reports up to June 30, 2024, and subsequent quarterly reports. If the plan is accepted by NASDAQ, the deadline for filing documents can be extended until February, otherwise the company can appeal. This move is seen as a positive step for the company to address financial reporting issues and restore market confidence, despite still facing an investigation by the US Department of Justice, and its stock price has dropped over 80% since its high point in March. Super Micro Computer, Inc. announced on Monday that they have appointed BDO USA as their new independent auditor, effective immediately, and have submitted a plan to NASDAQ to regain compliance to quickly submit the 10-K financial disclosure report originally scheduled for August but delayed due to circumstances. In their statement on Monday, the company expressed confidence in completing and submitting the annual 10-K report up to June 30, 2024, and the 10-Q quarterly report up to September 30, 2024, within the grace period provided by NASDAQ staff. This development is significant for Super Micro Computer, Inc. as its previous auditor Ernst & Young resigned in October over concerns about transparency and governance. Ernst & Young, as one of the Big Four accounting firms, undoubtedly added pressure to Super Micro Computer, Inc. with their resignation. However, Super Micro Computer, Inc. acted swiftly by hiring BDO USA, the sixth-largest auditor by revenue, which analyst Matt Bryson of Wedbush sees as "a big step forward for them" and a positive sign in proposing a plan to NASDAQ. Changing auditors and developing a plan to comply with NASDAQ listing rules is the latest development for Super Micro Computer, Inc. in a turbulent few months. Earlier this year, the company was favored by investors for its potential to benefit from the demand for artificial intelligence services. However, a negative report from short seller Hindenburg Research caused the company to delay their annual 10-K report and announced last week that they will delay their quarterly report. Additionally, Super Micro Computer, Inc. is also facing an investigation by the US Department of Justice, putting pressure on its stock price, which has fallen over 80% from its high point in March by Monday's close. It is worth noting that Super Micro Computer, Inc. has previously gone through the process of delisting and relisting. In 2019, the company's stock was delisted from the NASDAQ stock exchange for failing to timely submit its 10-K report and several quarterly reports. However, the company was approved to rejoin the exchange in 2020 and paid a $17.5 million fine to resolve an investigation by the US Securities and Exchange Commission. As part of the settlement agreement, Super Micro neither admitted nor denied the regulators' allegations. Whether Super Micro Computer, Inc. can successfully overcome the challenges of financial reporting again, regain market trust, remains to be seen.