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Shares of Super Micro Computer (SMCI+4.73%) (SMCI) soared 23% on Monday morning following the announcement that an independent special committee had concluded its investigation into the company’s operations and found no evidence of misconduct by the company’s management or Board of Directors.
Following the investigation, which was prompted by concerns over corporate governance, the committee recommended several key changes, including a transition to a new chief financial officer (CFO), along with the appointment of a new chief accounting officer (CAO) and chief compliance officer (CCO).
The investigation also addressed the resignation of the company’s public accounting firm, Ernst & Young, asserting that the firm’s statements related to the resignation were “not supported by the facts” uncovered during the review.
In response to the findings and recommendations, Super Micro Computer emphasized its commitment to scaling its operations to match its rapid growth, particularly within the AI sector.
“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,” the company said in a press release.
The committee also highlighted that the company’s leadership maintained an “appropriate tone at the top,” reaffirming their commitment to compliance and accurate financial reporting.
SMCI also announced that it has already adopted all the recommendations from the review and is accelerating efforts to strengthen its financial controls, compliance processes, and legal oversight. The company is currently finalizing its outstanding financial reports for fiscal year 2024 and has confirmed that no restatements for previous periods are anticipated. In its compliance plan to Nasdaq (NDAQ-0.50%), the company said it believes it will successfully complete its annual reports.