On October 24, 2024, Super Micro Computer, Inc., a Delaware-incorporated company listed on the NASDAQ Global Select Market under the trading symbol SMCI, reported a significant change in its financial reporting process. Ernst & Young LLP (EY), the company's registered public accounting firm, submitted a resignation letter to the company's Audit Committee. The resignation occurred during EY's first audit of the company for the fiscal year ending June 30, 2024. EY cited concerns about governance, transparency, and internal control over financial reporting, which put the timely filing of the annual report at risk. In response, Super Micro Computer's Board formed a Special Committee to review these matters, hiring Cooley LLP and Secretariat Advisors, LLC for an investigation. Although the review...Show More

On October 24, 2024, Super Micro Computer, Inc., a Delaware-incorporated company listed on the NASDAQ Global Select Market under the trading symbol SMCI, reported a significant change in its financial reporting process. Ernst & Young LLP (EY), the company's registered public accounting firm, submitted a resignation letter to the company's Audit Committee. The resignation occurred during EY's first audit of the company for the fiscal year ending June 30, 2024. EY cited concerns about governance, transparency, and internal control over financial reporting, which put the timely filing of the annual report at risk. In response, Super Micro Computer's Board formed a Special Committee to review these matters, hiring Cooley LLP and Secretariat Advisors, LLC for an investigation. Although the review is ongoing, EY expressed further concerns about the company's commitment to integrity and the independence of the Audit Committee and Board from management. EY's resignation was based on recent information that prevented them from relying on management's representations and being associated with the financial statements prepared by management. Super Micro Computer has disagreed with EY's decision but is taking the concerns seriously and will consider any recommendations from the Special Committee upon the review's conclusion. No disagreements or reportable events were noted between EY and the company in the fiscal years ended June 30, 2024, and 2023, prior to the resignation. The company has requested EY to provide a letter to the SEC regarding their agreement or disagreement with the company's statements. EY's letter dated October 29, 2024, is included as an exhibit to the report.