Super Micro Computer on Monday filed a plan with the Nasdaq Stock Market that will allow the data center specialist to avoid being delisted from the exchange. SMCI stock surged on the news.
The San Jose, Calif.-based company had until Monday to file a plan to regain compliance with Nasdaq's listing requirements. Super Micro is delinquent in filing its financial reports for its fiscal year ended June 30 and for the first quarter of fiscal 2025.
In a news release late Monday, Super Micro announced that it had submitted a compliance plan to Nasdaq to support its request for an extension of time to regain compliance. SMCI stock will remain listed pending Nasdaq's review of the compliance plan.
Further, Super Micro announced that the audit committee of its board of directors had hired BDO USA as its independent auditor. Its previous auditor, Ernst & Young, quit on Oct. 24, citing concerns about the company's financial reporting.
"We are pleased to welcome BDO as Supermicro's independent auditor," Chief Executive Charles Liang said in a statement. "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."
SMCI Stock Jumps Late
On the stock market today, SMCI stock advanced 15.9% to close at 21.54 as the company prepared its Nasdaq filing.
In extended trading, after the company's press release, SMCI stock rocketed more than 26% to 27.25.
SMCI stock hit an all-time high of 122.90 on March 8 before its troubles started. Super Micro Computer shares soared earlier this year as hyperscale cloud computing firms began splurging on AI data center gear.
Meanwhile, rivals such as Dell Technologies are aiming to grab market share from a weakened Super Micro.
On Monday, Dell stock received price target hikes from three Wall Street firms: Mizuho Securities, Morgan Stanley and Wells Fargo. All three have buy ratings on Dell stock
Meanwhile, Barclays on Friday joined the list of brokerage firms that have suspended coverage of SMCI stock amid Super Micro's operational issues.
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