On Tuesday, Super Micro Computer, Inc. (NASDAQ:SMCI) announced the appointment of BDO USA as its new independent registered public accounting firm, a move disclosed in an 8-K filing with the Securities and Exchange Commission. This decision comes as Super Micro seeks to address its compliance issues with Nasdaq.
The company has also officially submitted a compliance plan to Nasdaq, outlining steps to regain adherence to listing standards. Super Micro expressed confidence in its ability to file the overdue annual report (10-K) and quarterly reports (10-Q) within the timeframe set by Nasdaq.
The transition to BDO USA is expected to be efficient, as the firm will have access to all prior files from EY, the previous auditor. This should expedite the review and reporting process, according to the company.
Super Micro's proactive steps in the face of potential delisting from Nasdaq have been noted. The company's management team has been commended for its handling of the situation during what has been described as a financial storm.
The appointment of BDO USA, a subsidiary of the world's fifth-largest accounting firm, BDO, marks a significant step in Super Micro's efforts to maintain its listing on the Nasdaq stock market. The company's actions reflect a commitment to resolving its financial reporting issues and ensuring future compliance.
In other recent news, Super Micro Computer, Inc. has reported a significant surge in its Q1 FY'25 revenue, primarily driven by a robust demand for AI solutions. The preliminary net revenue is estimated between $5.9 billion to $6 billion, marking a 181% increase year-over-year. Non-GAAP earnings per share are projected at $0.75 to $0.76, a rise of 122% from the previous year. For Q2 FY'25, Supermicro expects net sales to range from $5.5 billion to $6.1 billion, with GAAP diluted earnings per share projected between $0.48 and $0.58.
Supermicro has also announced the appointment of BDO USA, P.C. as its new independent auditor, a move seen as a critical step toward updating the company's financial statements. In addition, Supermicro has submitted a compliance plan to the Nasdaq Stock Market to meet the exchange's listing requirements.
Lastly, Supermicro has unveiled its latest SuperCluster, an AI data center solution featuring NVIDIA (NASDAQ:NVDA)'s Blackwell platform. This addition is designed to significantly enhance the GPU compute density of the company's existing liquid-cooled NVIDIA HGX H100 and H200-based SuperClusters. These are among the recent developments for Supermicro.
InvestingPro Insights
Super Micro Computer's recent appointment of BDO USA as its new auditor comes at a critical time for the company, as reflected in the latest InvestingPro data and tips. Despite the company's current challenges, InvestingPro Tips indicate that analysts anticipate sales growth in the current year, with 6 analysts revising their earnings upwards for the upcoming period. This positive outlook aligns with the company's confidence in resolving its compliance issues.
However, investors should note that SMCI is trading at a low P/E ratio of 10.44 relative to its near-term earnings growth, which could suggest undervaluation in light of its growth prospects. The company's revenue growth is particularly impressive, with a 109.77% increase over the last twelve months as of Q4 2024, reaching $14.94 billion.
It's worth noting that SMCI's stock has experienced significant volatility recently, with a 54.42% price decline over the past month. This volatility underscores the importance of the company's efforts to regain compliance and stabilize its market position.
For investors seeking a more comprehensive analysis, InvestingPro offers 17 additional tips for Super Micro Computer, providing deeper insights into the company's financial health and market performance.
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