This excerpt was posted on the Supermicro website the day before yesterday. There is a lot more to it that addresses in detail the findings of a special committee that was formed to investigate the allegations made by, amongst others, their former auditors Ernst & Young who resigned after alleging wrongdoing, or at least lack of transparency with respect to revenue recognition and sales practices (among other things).
Supermicro Announces Completion of Review by Independent Special Committee
December 2, 2024
Special Committee, supported by outside counsel Cooley LLP and forensic accounting firm Secretariat Advisors, LLC, finds no evidence of misconduct on the part of management or the Board of Directors and that the Audit Committee acted independently
No restatement of reported financials expected
Board adopts recommendations of the Special Committee and appoints new Chief Accounting Officer, approves the transition to a new CFO and authorizes additional executive hires, along with other measures to strengthen the Company
SAN JOSE, Calif.–(BUSINESS WIRE)-- Super Micro Computer, Inc. (Nasdaq: SMCI) (the “Company”), a Total IT Solution Provider for AI, Cloud, Storage, and 5G/Edge, today announced that the independent Special Committee formed by the Company’s Board of Directors has completed its review (the “Review”). As announced on August 30, 2024, the Board of Directors formed this committee in response to information that was brought to the attention of its Audit Committee.
Among its findings, the independent Special Committee determined that the resignation of the Company’s former registered public accounting firm, Ernst & Young LLP (“EY”) and the conclusions EY stated in its resignation letter were not supported by the facts examined in the Review, the Special Committee’s interim findings reported to EY on October 2, 2024, or the Special Committee’s final findings.
(end of excerpt).
The entire article addresses each allegation by E & Y as well as the short sellers report published in August. As well as the composition of the committee and it’s findings.
They say they are prepared to complete their 10K and 10Q forms within the guidelines that the NASDAQ has the authority to grant.
I sold out after their auditors resigned and I don’t know that I’m sold on their explanation as well as the steps they are taking to address the situation that led up to this but anyway for any who are interested the response seems fairly detailed and may help any who haven’t already done so to make a decision.
At any rate the market seemed to like it. The share price spiked the day it was posted.