NEW YORK (AP) — Just over a month after Ernst & Young Resigns from accounting firmSuper Microcomputer said the review committee found no evidence of fraud or illegal activity by the server maker’s leadership.
Supermicro also follows recommendations from the committee, which began consideration several months ago after EY raised concerns about issues such as transparency, internal controls related to financial reporting, and operational soundness. , plans to search for a new chief financial officer and appoint other executives. This is the company’s first audit.
Additional information revealed during this review ultimately led EY to resign Became Super Micro’s certified public accountant in October. Supermicro disagreed with EY’s decision but subsequently appointed BDO as its new independent auditor last month.
Supermicro announced that a committee formed by its board of directors and outside counsel completed its review on Monday. The company said the conclusions drawn by EY in its resignation were “not supported by the facts” found in the investigation, and insisted there was no evidence of wrongdoing.
As a result, Super Micro does not expect its historical financial reports to be restated. Supermicro stock rose more than 20% on Monday morning.
In addition to the findings of this investigation, Super Micro also announced plans to appoint new leadership based on the committee’s recommendations. Supermicro has announced that it has begun a search for a new CFO, with David Weigand continuing in the role until the board of directors names a successor. The company also said it would “accelerate the search” for a chief compliance officer and general counsel.
Additionally, Supermicro announced that it has appointed Kenneth Chan, currently vice president of finance and corporate controller, as chief accounting officer.
This year has been a tumultuous year for Super Micro. And EY’s resignation is not the first time its accounting practices have been called into question. Back in August, short selling firm Hindenburg Research released a report. Alleging massive accounting manipulation The company cited “obvious accounting red flags” and evidence of undisclosed transactions. It also accused Supermicro of rehiring executives who were directly involved in the 2018 scandal. At the time, Supermicro said it does not comment “on rumors or speculation.”
The Wall Street Journal and other newspapers reported on these accusations. reported Citing people familiar with the matter, the Department of Justice has begun an investigation into Supermicro.
Super Micro is one of the technology companies riding the artificial intelligence wave these days. In August, Supermicro reported fourth-quarter sales of $5.31 billion, an increase of more than 143% compared to the $2.18 billion it reported in the same quarter in 2023.
