Super Micro Computer rallied 28.7% during U.S. trade on Monday (Tuesday AEDT) after an independent special committee reaffirmed its findings of "no evidence of misconduct" at the company and appointed a new chief accounting officer.
The embattled AI server maker has faced scrutiny over its financial reporting and governance, with its stock still down 65% from its March high despite recent gains.
The special committee’s investigation, supported by forensic accountants from Secretariat Advisors and legal counsel from Cooley LLP, concluded there were no substantial concerns about the integrity of Super Micro’s senior management or the accuracy of its financial statements.
The committee recommended replacing Chief Financial Officer David Weigand with Kenneth Cheung, currently Vice President of Finance, stepping in as the new Chief Accounting Officer.
The Special Committee noted, “The evidence reviewed by the Special Committee did not raise any substantial concerns about the integrity of Supermicro’s senior management or Audit Committee, or their commitment to ensuring that the Company’s financial statements are materially accurate.”
This follows the company's previous declaration in October that its audit committee found no evidence of fraud or misconduct during a three-month investigation.
However, despite the findings challenges at Super Micro persist. The company has yet to file audited financial statements for the fiscal year ending June or the latest quarter after Ernst & Young, its former auditor resigned in October, citing governance concerns. Super Micro's new auditor, BDO has not yet certified these filings or commented on the governance issues.
Super Micro is also facing a U.S. Department of Justice probe following a report from Hindenburg Research which revealed a short position in Super Micro earlier this year, accusing the company of "accounting manipulation."
Despite the stock's tumultuous year, it has rebounded in recent weeks, up 48% for the year as the company seeks to resolve its outstanding concerns.
