Super Micro Computer Stock Is Surging Today: What's Behind The Move?

Super Micro Computer Inc SMCI shares are trading higher Monday after the company announced the completion of its review by an independent special committee.

What Happened: Super Micro announced that the independent Special Committee formed by the company’s board has completed its review. The special committee review came after the company's independent auditor resigned at the end of October over governance and transparency concerns.

Super Micro said the committee determined that the resignation of the company’s former auditor and concerns raised in the resignation letter were “not supported by the facts examined in the review.”

Super Micro announced at the beginning of November that the special committee’s preliminary investigation found no evidence of fraud or misconduct on the part of management of the company’s board. Super Micro announced Monday that the committee’s final findings support the initial findings.

The special committee was comprised of Susie Giordano, an independent member of Super Micro’s board. The committee recommended the following measures after completing the investigation: a new CFO, a new chief accounting officer, the appointment of a chief compliance officer, an expansion of the legal department, an improvement of training and guardrail monitoring and review.

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Super Micro further announced that it has adopted all of the special committee recommendations. The company has started searching for a new CFO and has accelerated its search for a chief compliance officer and for a general counsel. Super Micro also said it appointed Kenneth Cheung to chief accounting officer.

Super Micro believes it will be able to file both its annual report for the fiscal year ended June, 30 2024 and its quarterly report for the period ended Sept. 30, 2024  within the discretionary period that can be granted by the Nasdaq in response to the compliance plan the company recently submitted.

Super Micro noted that it does not expect to restate any of its quarterly reports for the fiscal year ended June 30, 2024, or for any other prior fiscal years.

SMCI Price Action: Super Micro shares were up 12.4% at $36.67 at the time of publication, according to Benzinga Pro.

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