$SMCI (+1,96%) Hires new CFO and says independent investigation found no evidence of fraud

Super Micro Computer has begun a search for a new chief financial officer based on the recommendations of a special committee formed to investigate the AI server maker's accounting practices, the company announced Monday.

The company said the independent committee's more than three-month review found no evidence of fraud or misconduct by Super Micro's management, sending the company's shares up about 20 percent.

In late July, Super Micro's then auditor, Ernst & Young ( EY), raised concerns about the company's governance, transparency and internal control over financial reporting, prompting the company's board of directors to appoint a special committee.

The committee concluded that EY's statements were not supported by the facts examined in the audit, Super Micro said on Monday, adding that the evidence did not raise material concerns about the integrity of Super Micro's management.

"The audit committee demonstrated appropriate independence and generally exercised proper oversight of matters relating to financial reporting," the committee's findings said.

However, the committee found some failures on the part of the company for which the CFO was responsible, including instances where the company's auditor was not informed in a timely manner about the rehiring of some former employees.

Super Micro stated that it does not expect to restate its previously reported financials. The company reiterated that it will finalize its annual financial report for the year ended June 30.

The company confirmed that it would complete its annual financial report for the year ended June 30, but did not specify a target date for filing.

On the recommendation of the committee, the company appointed Kenneth Cheung, currently vice president of finance and corporate controller at Super Micro, as chief accounting officer.

The company also plans to appoint a Chief Compliance Officer and a General Counsel

Source: reuters.com