Super Micro Computer has published its annual financial report for fiscal 2024, as well as quarterly reports for the first and second quarters of fiscal 2025, to investors after months of delay. The company claims that former accounting firm EY is responsible for the tardiness, citing concerns over governance, transparency, and internal controls.
The Silicon Valley tech giant has faced scrutiny due to its rise to the Fortune 500 and its adjacency to Nvidia. In August, Hindenburg Research released a short report that delayed filing audited financials, sending the stock into a tailspin. Super Micro secured an extension from Nasdaq to file its reports, which it hit on Tuesday.
The company’s CEO and founder Charles Liang acknowledged weaknesses in internal controls over financial reporting and noted amendments to convertible debt terms due to the delay. However, this comes amid at least five lawsuits filed against the company in Canada and California, as well as subpoenas from the Department of Justice and Securities and Exchange Commission.
Liang’s family relationships worth millions are revealed in the documents, including a 30% interest in Leadtek Research, an authorized reseller of Super Micro. The investment involved Steve Liang, Charles Liang’s brother, serving on the board of Leadtek Research.
In response to former accounting firm EY’s resignation, citing substantial concerns over senior management integrity, Super Micro appointed BDO USA as its new accounting firm in November 2024. The company maintains that EY’s concerns led to the delay and points fingers at the accounting firm for the tardiness.
Source: https://finance.yahoo.com/news/super-micro-computer-finally-offers-233122126.html