Super Micro Computer (SMCI) has appointed BDO USA as its new auditor after Ernst & Young's resignation, potentially averting a Nasdaq delisting threat. The company, known for its partnership with Nvidia, had missed filing deadlines for both annual and quarterly reports.

Key Developments:

• Super Micro submitted a compliance plan to Nasdaq following BDO's appointment
• Previous auditor EY resigned, citing inability to rely on management and the audit committee
• The company's grace period with Nasdaq was set to expire next week

Financial Context:

• Gross profit margins increased to 18% in fiscal 2023 (up from 15.4% in 2022)
• Inventory valued at $1.45 billion in 2023
• Inventory reserves increased by $36.6 million

Historical Perspective: The company previously faced delisting in 2018 before rejoining Nasdaq in 2020, where it achieved a remarkable 3,000% stock price increase and earned a spot in the Fortune 500.

CEO Charles Liang expressed confidence in BDO's capabilities, stating, "BDO is a highly respected accounting firm with global capabilities. This is an important next step to bring our financial statements current."

The company has confirmed its commitment to achieving compliance with Nasdaq listing requirements as quickly as possible.

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