SMCI stock surges following review, announces plans for new CFO

December 03, 2024 02:15 AM AEDT | By Investing

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SMCI stock surges following review, announces plans for new CFO

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Investing.com -- Shares of Super Micro Computer (NASDAQ:SMCI) soared over 18% Monday after the company announced the completion of an independent review by a special committee of its board.

The review cleared management and the audit committee of concerns raised by former auditor Ernst&Young (EY), finding no evidence of fraud or misconduct.

The special committee, formed in August, concluded that SMCI's financial statements were materially accurate, and the audit committee demonstrated independence in its oversight.

It also found the company's leadership maintained "appropriate tone at the top," emphasizing commitment to compliance and proper financial reporting.

While no major discrepancies were uncovered, the review recommended several governance improvements to prepare SMCI for its rapid growth and increasing complexity.

These include appointing a new Chief Financial Officer, Chief Compliance Officer, and General Counsel. Kenneth Cheung, previously Vice President of Finance, was named Chief Accounting Officer.

The company stated it has begun a process to search for a new Chief Financial Officer, with David Weigand continuing to serve as CFO until the board has named his successor. In addition, it is accelerating its search for a Chief Compliance Officer and a General Counsel.

SMCI added it has already adopted all recommendations from the review and is accelerating efforts to enhance its financial controls, compliance processes, and legal oversight.

"To address the Special Committee's recommendations, and being mindful of the Company's rapid business growth over the past two years in helping to lead the AI revolution, the Board has instructed management to add additional experienced, senior talent commensurate with the Company's size and complexity today and to prepare for its future growth," SMCI stated in the press release, highlighting its ambition to scale further.

The completed review comes as SMCI works to finalize outstanding financial reports for fiscal 2024, with the company affirming it does not anticipate any restatements for prior periods.

Investors responded positively to the announcement, with shares climbing sharply.

This article first appeared in Investing.com

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