eastunder
5 days ago
Super Micro suffers suspension following auditor news, but AI trade rolls on
https://www.msn.com/en-us/money/companies/super-micro-suffers-suspension-following-auditor-news-but-ai-trade-rolls-on/ar-AA1tddzp?ocid=BingNewsSerp
The bad news around Super Micro Computer (NASDAQ:SMCI) continued today with the unexpected resignation of its auditing firm, Ernst & Young LLP.
Super Micro shares plunged more than 30% by noon trading on Wednesday. They are now down more than 60% over the past three months.
Rival Dell Technologies (NYSE:DELL) saw it shares soar 8% by noon trading as it could capture a larger share of the artificial intelligence server market. Rival Hewlett Packard Enterprise (NYSE:HPE) was up 3%. Nvidia (NASDAQ:NVDA), which is a partner with Super Micro, had only inched down 1%.
The analysts at Needham suspended coverage on Super Micro today after the investment firm had previously given the company a Buy rating.
"Not only does Ernst and Young's resignation raise considerable questions about the validity of Supermicro's current and past financial statements, but it also raises significant questions about Supermicro's corporate governance and management's commitment to integrity and ethical values," Needham noted.
Needham also sees a significant risk of Super Micro defaulting on the company's Term Loan Agreement with Bank of America.
"Under these circumstances, we are forced to Suspend our Rating on Supermicro shares," the bank added. "Our previous financial model should no longer be relied upon."
Wells Fargo now believes Super Micro will likely be unable to file its fiscal 2024 statements in time.
"We see the resignation of SMCI's independent auditor EY as materially decreasing the odds that SMCI will be able to file its F2024 financial statements on time as it moves to hire a new public accounting firm," Wells Fargo analysts said in a note.
"SMCI currently has a listing non-compliance letter from NASDAQ dated Sept. 17," Mizuho analysts said in a note. "We believe this notice gives SMCI 60 days (Nov. 16) to present a plan to return to compliance with NASDAQ requirements or face delisting (the second instance in the last 5 years). Following the EY resignation, we believe it increases the risk for SMCI of not filing the 10-K or getting an auditor to file 10-K plan, while increasing delisting risks."
Super Micro announced today it will release a business update next week on the first quarter of fiscal 2025, but not a full financial report. The update will be webcast at 5 p.m. ET on Tuesday, November 5.
The company was already reeling from the effects of a short report issued by Hindenburg Research in late August.
eastunder
5 days ago
CORRECTING and REPLACING Supermicro Schedules Conference Call and Webcast for First Quarter Fiscal 2025 Business Update
https://finance.yahoo.com/news/supermicro-schedules-conference-call-webcast-135400041.html
SAN JOSE, Calif., October 30, 2024--(BUSINESS WIRE)--In the first paragraph, date of first quarter fiscal 2025 business update should read: November 5, 2024 (instead of November 5, 2025).
The updated release reads:
SUPERMICRO SCHEDULES CONFERENCE CALL AND WEBCAST FOR FIRST QUARTER FISCAL 2025 BUSINESS UPDATE
Super Micro Computer, Inc. (SMCI), a Total IT Solution Provider for AI, Cloud, Storage, and 5G/Edge, today announced that it will provide a first quarter fiscal 2025 business update on Tuesday, November 5, 2024, at 5:00 p.m. ET / 2:00 p.m. PT.
eastunder
5 days ago
SMCI Letter to the sec from EY:
(I put that into print over here for you, Morokoy)
https://www.sec.gov/Archives/edgar/data/1375365/000137536524000036/lettertothesectobeattach.htm
Commissioners:
We have read Item 4.01 of Form 8-K dated October 29, 2024, of Super Micro Computer, Inc (the "Company") and are in agreement with the statements contained in the first paragraph, the first sentence of the second paragraph, the third paragraph, the first three sentences of the fourth paragraph, the fifth paragraph, the seventh paragraph and the eight paragraph therein. We have no basis to agree or disagree with other statements of the registrant contained therein.
Ok. So, What does that look like?
-----------------------------------------------------------------------------------------
Item 4.01 Changes to Registrant’s Certifying Accountant
first paragraph
On October 24, 2024, Ernst & Young LLP (“EY”) sent the members of the Audit Committee a letter of resignation as the Company’s registered public accounting firm (the “Resignation Letter”).
the first sentence of the second paragraph
The Chair of the Audit Committee discussed with EY the reasons for EY’s resignation. The Company has begun the process of identifying a successor independent registered public accounting firm. The Company will authorize EY to respond fully to the inquiries of the successor independent registered public accounting firm, once selected. The Company does not currently expect that resolution of any of the matters raised by EY, or under consideration by the Special Committee, as noted below, will result in any restatements of its quarterly reports for the fiscal year 2024 ending June 30, 2024, or for prior fiscal years.
the third paragraph
EY was engaged on March 15, 2023 to perform an audit for the Company’s fiscal year ending June 30, 2024, and has not issued any report on the Company’s financial statements or the Company’s internal control over financial reporting. EY resigned while conducting the audit for the Company’s fiscal year ended June 30, 2024, EY’s first audit on the Company’s behalf.
the first three sentences of the fourth paragraph
In late July 2024, EY communicated to the Audit Committee concerns about several matters relating to governance, transparency and completeness of communications to EY, and other matters pertaining to the Company’s internal control over financial reporting, and that the timely filing of the Company’s annual report was at significant risk. In response, the Board appointed an independent special committee of the Board (the “Special Committee”) to review the matters and certain of the Company’s internal controls and certain governance procedures (the “Review”). The Special Committee engaged Cooley LLP, and forensic accounting firm Secretariat Advisors, LLC to perform an investigation on behalf of and at the direction of the Special Committee. EY and the Board received updates with preliminary information relating to the Review. As of the date of this Current Report on Form 8-K, the Review remains ongoing and final findings and recommendations have not yet been communicated to EY or the Board.
the fifth paragraph,
After receiving additional information through the Review process, EY informed the Special Committee that the additional information EY received raised questions, including about whether the Company demonstrates a commitment to integrity and ethical values consistent with Principle 1 of the COSO Framework, about the ability and willingness of the Audit Committee and overall Board to demonstrate and act as an oversight body that is independent of the CEO and other members of management in accordance with Principle 2 of the COSO Framework, and whether EY could rely on representations from certain members of management and from the Audit Committee. In the Resignation Letter, EY stated, in part: “we are resigning due to information that has recently come to our attention which has led us to no longer be able to rely on management's and the Audit Committee’s representations and to be unwilling to be associated with the financial statements prepared by management, and after concluding we can no longer provide the Audit Services in accordance with applicable law or professional obligations.”
Although the Company recognizes EY’s decision is final, it disagrees with EY’s decision to resign as the Company’s independent registered public accounting firm – the Special Committee has not yet obtained all information relevant for the Review and has not concluded the Review. Nevertheless, the Company has taken the concerns expressed by EY seriously, and will carefully consider the findings of the Special Committee and any remedial or other actions recommended by the Special Committee following conclusion of the Review.
the seventh paragraph
Other than as described above, during the fiscal years ended June 30, 2024 and 2023, and the subsequent interim period preceding EY’s resignation, (1) there were no “disagreements,” as defined in Item 304(a)(1)(iv) of Regulation S-K, with EY on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which if not resolved to EY’s satisfaction to our knowledge would have caused it to make reference to the subject matter thereof in connection with its report, and (2) there were no “reportable events” as described in Item 304(a)(1)(v) of Regulation S-K.
The eighth paragraph
The Company has provided EY with a copy of the disclosures required by Item 304(a) of Regulation S-K contained in Item 4.01 of this Current Report on Form 8-K and has requested that EY furnish the Company with a letter addressed to the Securities and Exchange Commission stating whether it agrees with the Company’s statements made in response to those requirements and, if not, stating the respects in which it does not agree. A copy of EY’s letter, dated October 29, 2024, is filed as Exhibit 16.1 to this Current Report on Form 8-K.
eastunder
5 days ago
Supermicro Schedules Conference Call and Webcast for First Quarter Fiscal 2025 Business Update
09:54:00 AM ET, 10/30/2024 - Business Wire
SAN JOSE, Calif.--(BUSINESS WIRE)--Oct. 30, 2024--Super Micro Computer, Inc. (SMCI), a Total IT Solution Provider for AI, Cloud, Storage, and 5G/Edge, today announced that it will provide a first quarter fiscal 2025 business update on Tuesday, November 5, 2025, at 5:00 p.m. ET / 2:00 p.m. PT.
eastunder
5 days ago
SMCI: The plot thickens...
https://archive.fast-edgar.com/20241030/A3LZF22CZ229L2Z2222T22ZMFUTOZZ225262/
On October 24, 2024, Ernst & Young LLP (“EY”) sent the members of the Audit Committee a letter of resignation as the Company’s registered public accounting firm (the “Resignation Letter”).
The Chair of the Audit Committee discussed with EY the reasons for EY’s resignation. The Company has begun the process of identifying a successor independent registered public accounting firm. The Company will authorize EY to respond fully to the inquiries of the successor independent registered public accounting firm, once selected. The Company does not currently expect that resolution of any of the matters raised by EY, or under consideration by the Special Committee, as noted below, will result in any restatements of its quarterly reports for the fiscal year 2024 ending June 30, 2024, or for prior fiscal years.
EY was engaged on March 15, 2023 to perform an audit for the Company’s fiscal year ending June 30, 2024, and has not issued any report on the Company’s financial statements or the Company’s internal control over financial reporting. EY resigned while conducting the audit for the Company’s fiscal year ended June 30, 2024, EY’s first audit on the Company’s behalf.
In late July 2024, EY communicated to the Audit Committee concerns about several matters relating to governance, transparency and completeness of communications to EY, and other matters pertaining to the Company’s internal control over financial reporting, and that the timely filing of the Company’s annual report was at significant risk. In response, the Board appointed an independent special committee of the Board (the “Special Committee”) to review the matters and certain of the Company’s internal controls and certain governance procedures (the “Review”). The Special Committee engaged Cooley LLP, and forensic accounting firm Secretariat Advisors, LLC to perform an investigation on behalf of and at the direction of the Special Committee. EY and the Board received updates with preliminary information relating to the Review. As of the date of this Current Report on Form 8-K, the Review remains ongoing and final findings and recommendations have not yet been communicated to EY or the Board.
After receiving additional information through the Review process, EY informed the Special Committee that the additional information EY received raised questions, including about whether the Company demonstrates a commitment to integrity and ethical values consistent with Principle 1 of the COSO Framework, about the ability and willingness of the Audit Committee and overall Board to demonstrate and act as an oversight body that is independent of the CEO and other members of management in accordance with Principle 2 of the COSO Framework, and whether EY could rely on representations from certain members of management and from the Audit Committee. In the Resignation Letter, EY stated, in part: “we are resigning due to information that has recently come to our attention which has led us to no longer be able to rely on management's and the Audit Committee’s representations and to be unwilling to be associated with the financial statements prepared by management, and after concluding we can no longer provide the Audit Services in accordance with applicable law or professional obligations.”
Although the Company recognizes EY’s decision is final, it disagrees with EY’s decision to resign as the Company’s independent registered public accounting firm – the Special Committee has not yet obtained all information relevant for the Review and has not concluded the Review. Nevertheless, the Company has taken the concerns expressed by EY seriously, and will carefully consider the findings of the Special Committee and any remedial or other actions recommended by the Special Committee following conclusion of the Review.
Other than as described above, during the fiscal years ended June 30, 2024 and 2023, and the subsequent interim period preceding EY’s resignation, (1) there were no “disagreements,” as defined in Item 304(a)(1)(iv) of Regulation S-K, with EY on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which if not resolved to EY’s satisfaction to our knowledge would have caused it to make reference to the subject matter thereof in connection with its report, and (2) there were no “reportable events” as described in Item 304(a)(1)(v) of Regulation S-K.
The Company has provided EY with a copy of the disclosures required by Item 304(a) of Regulation S-K contained in Item 4.01 of this Current Report on Form 8-K and has requested that EY furnish the Company with a letter addressed to the Securities and Exchange Commission stating whether it agrees with the Company’s statements made in response to those requirements and, if not, stating the respects in which it does not agree. A copy of EY’s letter, dated October 29, 2024, is filed as Exhibit 16.1 to this Current Report on Form 8-K.
eastunder
6 days ago
they did state they would have it within the 15
https://www.sec.gov/Archives/edgar/data/1375365/000137536524000031/smci-form12bx25nt10xkx2024.htm
The subject annual report, semi-annual report, transition report on Form 10-K, Form 20-F, Form 11-K, Form N-SAR or Form N-CSR, or portion thereof, will be filed on or before the fifteenth calendar day following the prescribed due date; or the subject quarterly report or transition report on Form 10-Q or subject distribution report on Form 10-D, or portion thereof, will be filed on or before the fifth calendar day following the prescribed due date; and...
later in that same filing mentioned...
Based upon the work done to date, the Company does not anticipate the 2024 Form 10-K will contain any material changes to its results for the fiscal year and quarter ended June 30, 2024 that were announced in the Company’s press release dated August 6, 2024.
But all of that remains to be seen
I did expect it earlier myself. That was on 8/30 in the SEC filings
When that didn't happen it prompted the Delisting notice that then gave the 60 days
Which is where we sit now. Waiting
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