Supermicro Stock Jumps After Probe Finds No Accounting Wrongdoing
Main points
- Super Micro Computer said an independent review of its accounting practices found no wrongdoing.
- The computer server maker added that concerns raised by its former auditor had “no basis in fact.”
- The report also calls for replacing Chief Financial Officer David Weigand, which the board is doing.
AMD stock (SMCI) or Supermicro surged about 20% to lead S&P 500 Index Shares of the embattled computer server maker rose on Monday after it announced an investigation that found no wrongdoing in the company’s accounting practices. The company also said it would replace its financial chief.
The San Jose, Calif.-based company said its independent special committee completed its investigation and the findings “did not cast any material light on the integrity of Supermicro’s senior management or the audit committee or their commitment to ensuring the integrity of the company’s financial statements.” Worry”. Substantively accurate. “
The accounting issues came to light earlier this year when the company announced it would be unable to file its financial reports. Form 10-K fiscal year 2024 due to accounting issues. This resulted in Nasdaq The company was threatened with delisting for not complying with market requirements. In addition, AMD’s auditor Ernst & Young resigned, explain It was “unwilling to be linked to the financial statements prepared by management.”
Supermicro doesn’t expect to have to restate results
Supermicro explained that the independent special committee concluded that the reasons for Ernst’s departure “were not supported by the facts examined in the review.” It added that “no restatements are expected for the quarterly reports for fiscal 2024, which ends on June 30, 2024, or for prior fiscal years.”
According to the recommendations of the expert group, Chief Financial Officer (CFO) David Weigand will be replaced once a new CFO is appointed. The company noted that the board of directors has begun the process to fill the position.
The accounting issues sent AMD’s stock price on a roller-coaster ride. It fell to its lowest level since May 2023 last month before rebounding and is up nearly 40% so far this year.