- Stocks jumps 30% after appointing new audit firm
- Rally added nearly $4 billion to market cap
- Dark clouds hanging over Super Micro since Ernst & Young resigned
Computer servers maker Super Micro Computer (SMCI:NASDAQ) saw its share price surge overnight after it named BDO USA as its auditor and said it had submitted a plan to Nasdaq seeking more time to comply with listing rules.
In a wild trading session, Super Micro shares jumped close to 30%. Pre-market data has them opening at $27.83 when US markets open later today.
The Silicon Valley company said it believed it will be able to complete its annual and quarterly reports, although it did not specify when it would do so.
WHAT THE COMPANY SAID
‘BDO is a highly respected accounting firm with global capabilities. This is an important next step to bring our financial statements current, an effort we are pursuing with both diligence and urgency’, Super Micro president and CEO Charles Liang said in a statement.
There’s a been a massive dark cloud hanging over Super Micro since October when Ernst & Young resigned as the company’s auditor, citing concerns over internal controls and board independence. The firm was also reportedly under federal investigation over a short seller report and had delayed filing its 2024 financial results.
Investors will be hoping that this is the first step towards drawing a line under these events and getting the shares back to previous peaks above $100 of earlier this year.
