The company’s auditor, Ernst & Young, will not undertake to audit Super Micro’s annual financial report, the server manufacturer announced to the American Stock Exchange on Wednesday. The company’s share price, fueled by the AI boom, suddenly began to plummet, and investors are fleeing the company.
The first concerns about the manufacturer’s accounting appeared in the summer, when Hindenburg Research, an independent financial analysis company helping investors, accused the company’s management of accounting manipulation. A day later, Super Micro announced that it was delaying the publication of its annual report due to certain “internal process reviews” related to the compilation of its accounting.
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Behind the scenes, the company’s auditor already indicated in July that concerns had arisen regarding the compilation of the company’s annual financial report, after which Super Micro launched an internal investigation.
Subsequently, in September, based on the claims of a former employee, the American Department of Justice also launched an investigation against the company.
Ernst & Young decided to withhold its name from Super Micro’s report during an internal investigation at the company. According to the auditor’s statement, the auditors can no longer work with the management and the audit committee.
Among the players in the server market, Super Micro was one of the biggest winners of the hype around artificial intelligence. The company’s market value shot up rapidly from the beginning of last year, at the peak in March the company was already worth 67 billion dollars. The stock market reacted extremely nervously to yesterday’s news, Super Micro’s shares lost more than 30% of their value within a day.
Source: www.hwsw.hu
