After an independent review revealing no board or audit committee misbehavior, Super Micro Computer (SMCI, Financials) shares soared about 30% on Monday. The Nvidia (NVDA, Financials) partner will replace its CFO in line with improvements in governance.
Initiated after auditor Ernst & Young resignation for governance and internal control issues, the special committee's review found no need for financial restatements. Since then, Super Micro has hired BDO USA as its new auditor and sent Nasdaq a compliance report meant to stop delisting.
Over three months, the assessment turned significant procedural flaws but no proof supporting Ernst & Young's claims. Former vice president of finance Kenneth Cheung has been appointed chief accounting officer per committee recommendations. To improve governance, the business intends to name a new general counsel, chief compliance officer, and chief financial officer.
Super Micro does not plan to restate financial reporting for fiscal year 2024 or other years; it intends to achieve Nasdaq's listing criteria within the discretionary time.
Super Micro has been especially close to Nvidia, incorporating its GPUs into its server systems to enable artificial intelligence and machine learning uses. This cooperation has improved Super Micro's standing in the market for artificial intelligence servers.
