NVIDIA’s Major Customer – Super Micro Computer (SMCI) – Plunges As Its Accounting Firm Resigns After Citing Concerns Around A “Commitment To Integrity And Ethical Values”
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Super Micro Computer (SMCI), a retailer of high-performance servers and liquid-cooled AI racks, has remained in the spotlight ever since Hindenburg Research published its damning report against the company back in August, prompting SMCI to then delay the filing of the requisite annual report, presumably in a bid to undertake a comprehensive internal review. Now, however, Super Micro Computer appears perilously close to a maelstrom, given that its accounting firm has resigned, and the requisite annual report has yet to be filed.
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To wit, Ernst & Young (EY) has now sent a letter to Super Micro Computer's audit committee, tendering its resignation as the company's officially designated accounting firm.
Critically, EY resigned during the auditing process pertaining to Super Micro Computer's financial statements for the year that ended on the 30th of June, 2024:
The letter goes on to note:
In what constitutes the letter's most damning part against Super Micro Computer, EY notes:
For the benefit of those who might not be aware, Hindenburg Research had leveled hard-hitting allegations against Super Micro Computer back in August, asserting among other things that the company engages in distribution channel stuffing by pushing products to distributors based on artificially inflated demand forecasts, undertakes partial shipments to meet specific sales targets and inflate its total shipment count in the process, re-hired top executives responsible for "widespread accounting violations" that had resulted in a $17.5 million settlement with the SEC, and paid nearly a billion dollars over the past three years to non-arm's-length suppliers such as Ablecom and Compuware.
SMCI's fiscal year
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