Supermicro Stock Soars on Plan To Avoid Delisting | Global News Avenue

Ultramicrocomputer (SMCI) shares surged in extended trading on Monday after the company appointed a new auditor and submitted a compliance plan to avoid delisting from the U.S. Securities and Exchange Commission. Nasdaq.

The server maker said BDO USA will serve as its new auditor and expects to be able to complete its delayed annual report, but did not provide a target date for the report.

Supermicro received a warning letter Nasdaq gave it 60 days on Sept. 17, effective until Monday, to file or file its plan to report delinquency.

Supermicro shares rose more than 25% after the market closed on Monday, after rising nearly 16% during regular trading hours.

AMD shares soar on regulatory concerns

The move follows months of speculation about the server maker’s accounting practices following a report in August by short-seller Hindenburg. Accused of accounting manipulation by the company and other issues.

In October, Supermicro reported Ernst & Young Resigned from the position of company auditortold the board it was “unwilling to be associated with the financial statements prepared by management.”

Expectations soared earlier this year about Supermicro’s ability to handle strong demand. Artificial Intelligence (AI) On the infrastructure side, shares have been pressured by regulatory concerns, with shares down nearly 24% from the start of the year to Monday’s close.