Supermicro Stock Soars on Plan To Avoid Delisting

Super Micro Computer (SMCI) shares soared in extended trading Monday after the company named a new auditor and filed a compliance plan to avoid delisting by the Nasdaq.

The server maker said BDO USA would serve as its new auditor, and asked the exchange for an extension to complete its delayed annual report, saying it expects to be able to complete it within a “discretionary period” granted by the Nasdaq.

Supermicro had received a warning letter from the Nasdaq on Sept. 17 giving it 60 days or effectively until Monday to file or submit a plan for its delinquent report.

Shares of Supermicro were up over 25% after the bell Monday following the compliance plan’s release, on the heels of a nearly 16% gain during the regular session.

Supermicro Stock’s Surge Follows Hit From Regulatory Concerns

The news follows months of speculation about the server maker’s accounting practices, with a report from short seller Hindenburg in August accusing the company of accounting manipulation and other issues.

In October, Supermicro reported EY resigned as the company’s auditor, telling the board it was “unwilling to be associated with the financial statements prepared by management.”

After surging earlier in the year on expectations of Supermicro’s ability to ride the boom in demand for artificial intelligence (AI) infrastructure, shares have been pressured by regulatory concerns, and were down nearly 24% from the start of the year through Monday’s close.

UPDATE—Nov. 18, 2024: This article has been updated to reflect additional information from Super Micro Computer’s compliance plan.