Super Micro Computer plunges as its auditor quits
Wall Street Breakfast
Seeking Alpha
4.1 • 1K Ratings
🗓️ 30 October 2024
⏱️ 8 minutes
🧾️ Download transcript
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Show Notes
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| 0:00.0 | Welcome to Seeking Alpha's Wall Street Lunch, our afternoon update on today's market action news and analysis. |
| 0:10.0 | Good afternoon. Today is Wednesday, October 30th, and I'm your host, Kim Khan. Our top story so far. |
| 0:16.0 | Super Micro Computer is plunging by nearly a third after its auditor resigned. |
| 0:21.0 | Ernst & Young sent the members of the audit committee of the Board of Directors a letter of resignation on October 24th, the AI servermaker said in a filing. |
| 0:29.0 | Although the company recognizes EY's decision as final, it disagrees with EY's decision to resign as the company's independent registered |
| 0:36.3 | public accounting firm. |
| 0:37.8 | The special committee has not yet obtained all information relevant for the review and has not |
| 0:41.9 | concluded the review, Super Micro said. |
| 0:44.0 | Nevertheless, the company has taken the concerns expressed by EY seriously and will carefully |
| 0:49.3 | consider the findings in the Special Committee and any remedial or other actions recommended by the Special Committee following conclusion of the review. |
| 0:57.0 | Super Micro said the Chair of the Audit Committee discussed the reasons for EY's resignation and has started to look for a successor independent registered |
| 1:04.0 | public accounting firm. The Charles Lang-led company added it does not |
| 1:08.2 | currently expect that resolution of any matters raised by EY or under |
| 1:12.0 | consideration by the Special Committee will result |
| 1:14.4 | in any restatement of its quarterly reports for the fiscal year 2024 or for prior fiscal |
| 1:19.2 | years. Concerns about the company's financial statements cropped up in late August when Hindenburg |
| 1:24.4 | research issued a report saying it was short Super Micro shares. A day later, Super Micro said it was delaying |
| 1:30.2 | its annual 10K filing. Analysts at Needham suspended coverage on Super Micro |
| 1:35.2 | today after the investment firm had previously given the company a buy rating. |
| 1:38.8 | They said, not only does Ernst & Young's resignation raise considerable questions about the validity of Super Micro's current and past financial statements, |
| 1:47.5 | but it also raises significant questions about Super Micro's corporate governance and management's commitment to integrity and ethical values. |
| 1:56.0 | On the economic front, U.S. growth continues to chug along, helped by the resilient consumer. |
... |
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