Super Micro Computer (SMCI) is taking steps to address recent allegations by making key personnel changes, despite a special committee finding no substantial evidence of wrongdoing.
Following an investigation into allegations raised by Hindenburg Research, the special committee recommended that SMCI recruit a new Chief Financial Officer (CFO) and appoint a Chief Accounting Officer. Current CFO David Weigand will be replaced.
Kenneth Cheung Appointed as Chief Accounting Officer
Kenneth Cheung, previously Vice President and Corporate Controller at SMCI, has been appointed as the new Chief Accounting Officer. Mr. Cheung brings extensive experience, having worked at Lumentum Holdings Inc., Pericom Semiconductor Corp., Ernst & Young, and PricewaterhouseCoopers.
Special Committee Findings
The special committee found no substantial concerns regarding the integrity of SMCI's senior management or Audit Committee. They stated that the evidence did not suggest any issues with their commitment to accurate financial reporting.
The committee also addressed the reasons given by Ernst & Young for their refusal to continue as SMCI's auditor, rejecting the allegations raised.
The allegations by Hindenburg Research, which included claims of channel stuffing, partial shipments, and questionable relationships with suppliers, prompted delays in SMCI's financial reporting. The Nasdaq exchange is currently reviewing SMCI's compliance plan to avoid delisting.
