A major AI company faced delays in filing its annual financial reports and attributed the delay to its former Big Four auditor, EY.
Accounting Dispute Leads to Late Filings
Supermicro Computer, known for its AI servers and partnership with Nvidia, submitted its overdue 10-K annual filing for fiscal 2024 along with the first two quarterly reports for fiscal 2025 to the Securities and Exchange Commission, albeit months behind schedule. The tardiness posed a risk of Nasdaq delisting until the company secured an extension in December. Supermicro pointed the finger at EY for the delay in a press release, mentioning concerns raised by the auditor and its subsequent resignation.
EY's Concerns and Resignation
In October 2024, EY ceased its services for Supermicro following expressed apprehensions about the company's financial governance and leadership transparency. These misgivings were initially brought to the board's attention in July. Additionally, Hindenburg Research's report in August 2024 highlighted apparent accounting irregularities within Supermicro's financial operations. Despite disagreements with EY's withdrawal, Supermicro maintained that ongoing audit procedures and an investigative panel were in progress.
New Auditor and Financial Review
Subsequently, Supermicro appointed BDO as its new accounting firm, with the latter affirming the accuracy of the company's financial standing in its assessment. The special committee's evaluation also did not raise significant doubts regarding management integrity or financial statement accuracy. Following the filings, Supermicro's stock experienced a notable surge, reflecting renewed compliance with Nasdaq guidelines and investor confidence.
Market Performance and Growth
As an early adopter of AI technologies in collaboration with industry giants like Nvidia, AMD, and Intel, Supermicro has witnessed remarkable stock price appreciation and revenue growth. The company's shares have surged by 67% this year alone, with sales surpassing $14.9 billion in 2024—a significant increase from the previous year. Supermicro's market capitalization stands at over $30 billion, underscoring its prominent position in the AI server manufacturing sector.
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By: pthompson@businessinsider.com (Polly Thompson)
Title: Supermicro Blames Former Auditor EY for Delay in Filing Financial Reports
Sourced From: www.businessinsider.com/supermicro-computer-filed-accounts-late-blames-big-4-ey-nasdaq-2025-2
Published Date: Thu, 27 Feb 2025 12:32:01 +0000
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