Supermicrocomputer stock prices plummeted due to resignation of auditors
In response to the resignation of an auditor from an artificial intelligence server manufacturer, supermicrocomputer (NASDAQ: SMCI)'s stock price plummeted about 30% in pre-market trading on Wednesday.
What is Super MicroDocuments to be submittedAmong them, it was stated that Ernst & Young LLP sent resignations to audit committee members of the board of directors on 10/24.
“We are aware that EY's decision is final, but we cannot agree with EY's decision to resign from our independent registered public accountant firm. The special committee has yet to obtain all the information required for the review, and the review has not been completed,” Supermicro said in the submission. “However, we take the concerns expressed by EY seriously and intend to carefully review the findings of the Special Committee and the corrective and other measures recommended by the Special Committee after the review is completed.”
Supermicro said the chairman of the audit committee discussed the reasons for EY's resignation and has begun searching for an independent registered public accountant firm to replace him.
The company, led by Charles Liang, added, “We do not currently anticipate that the quarterly report for the 2024 fiscal year ending 2024/6/30 or earlier will be revised due to issues raised by EY or issues considered by the Special Committee as described below.”
Concerns about the company's financial statements are due to a report that Hindenburg Research is shorting shares in SupermicroIt was announcedIt surfaced in late August. The next day, Supermicro will postpone the submission of the annual 10-KIt was announced. After that, the company believes that there will be no major changes in 2024stated.
Liang wrote to the company's customers and partners in September saying that shortened reports or delayed annual reports would not affect themstated.
What is Super MicroDocuments to be submittedAmong them, it was stated that Ernst & Young LLP sent resignations to audit committee members of the board of directors on 10/24.
“We are aware that EY's decision is final, but we cannot agree with EY's decision to resign from our independent registered public accountant firm. The special committee has yet to obtain all the information required for the review, and the review has not been completed,” Supermicro said in the submission. “However, we take the concerns expressed by EY seriously and intend to carefully review the findings of the Special Committee and the corrective and other measures recommended by the Special Committee after the review is completed.”
Supermicro said the chairman of the audit committee discussed the reasons for EY's resignation and has begun searching for an independent registered public accountant firm to replace him.
The company, led by Charles Liang, added, “We do not currently anticipate that the quarterly report for the 2024 fiscal year ending 2024/6/30 or earlier will be revised due to issues raised by EY or issues considered by the Special Committee as described below.”
Concerns about the company's financial statements are due to a report that Hindenburg Research is shorting shares in SupermicroIt was announcedIt surfaced in late August. The next day, Supermicro will postpone the submission of the annual 10-KIt was announced. After that, the company believes that there will be no major changes in 2024stated.
Liang wrote to the company's customers and partners in September saying that shortened reports or delayed annual reports would not affect themstated.
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