Super Micro Computer said an external review of its business found no evidence of wrongdoing and that the company will appoint new top financial leadership.
The company is looking for a new chief financial officer, chief compliance officer and general counsel, it said in a statement Monday.
On November 5, 2024, the Company announced that the Special Committee's investigation preliminarily found that the Audit Committee had acted independently and that there was no evidence of fraud or misconduct on the part of management or the Board of Directors.
The Special Committee's final findings support those initial findings, and the Company is now disclosing the details of the Review, along with measures recommended by the Special Committee.
The Special Committee's investigation was intended to assess whether the information brought to the Audit Committee's attention by EY, and certain other matters identified during the Review, raised substantial concerns about (i) the integrity of the Company's senior management and Audit Committee, (ii) the commitment of the Company's senior management and Audit Committee to ensuring that the Company's financial statements are materially accurate, (iii) the Audit Committee's independence and ability to provide proper oversight over matters relating to financial reporting, and (iv) the tone at the top of the Company with regard to rehiring certain former employees and financial reporting.
The Special Committee's key findings are summarized as follows:
And due to the lack of problems found, the board says no restatement of reported financials is expected.
As announced on November 18, 2024, in its compliance plan to Nasdaq, the Company believes it will be able to complete its Annual Report on Form 10-K for the year ended June 30, 2024, and its Quarterly Report on 10-Q for the fiscal quarter ended September 30, 2024 and become current with its periodic reports within the discretionary period available to the Nasdaq staff to grant.
As previously disclosed, the Company does not anticipate any restatements of its quarterly reports for the fiscal year 2024 ended June 30, 2024, or for prior fiscal years.
Specifically, with reference to Revenue recognition and sales practices
For now the market is happy about this...
Do we really trust the 'independent' investigation after an external auditor abandoned ship?
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.
And, having found no evidence of misconduct, why did the company fire CFO David Weigand, and seek a chief compliance officer, chief accounting officer, and general counsel?