Super Micro Computer Stock Plunges After Resignation Of Ernst & Young As Auditor

(RTTNews) - Super Micro Computer, Inc. (SMCI), Wednesday disclosed in a filing that Ernst & Young has resigned as the company's auditor while conducting an audit of financial report for the fiscal year.

In the resignation letter, EY explained that it was "resigning due to information that has recently come to our attention which has led us to no longer be able to rely on management's and the audit committee's representations and to be unwilling to be associated with the financial statements prepared by management, and after concluding we can no longer provide the audit services in accordance with applicable law or professional obligations," according to the filing.

The server maker said that it disagrees with EY's decision to resign as the company's independent registered public accounting firm. However, it takes EY's concerns seriously.

In July, EY has raised concerns to Super Micro's audit committee regarding matters related to "governance, transparency and completeness of communications to EY, and other matters pertaining to the company's internal control over financial reporting, and that the timely filing of the company's annual report was at significant risk."

Currently, Super Micro's stock is moving down 30.58 percent, to $34.02 on the Nasdaq.