Super Micro Computer (SMCI.US) crashes over 30% after auditor resigns
1min read Microchip Technology (SMCI.US) opened sharply lower on Wednesday, and as of writing, has plunged over 30% to $34.10. The news comes as Microchip Technology said in a filing on Wednesday that its auditor has resigned. "While the Company acknowledges that the decision of Ernst & Young is final, it disagrees with the decision of Ernst & Young to resign as the Company's independent registered public accounting firm - the Special Committee has not received all information related to the review and has not completed the review," Microchip Technology said in the filing. "Nevertheless, the Company has taken seriously the concerns expressed by Ernst & Young and will carefully consider the findings of the Special Committee and any remedial measures or other actions recommended by the Special Committee following the completion of the review." Microchip Technology had previously been embroiled in an accounting scandal. In September, it was reported that Microchip Technology was formally under investigation by the U.S. Department of Justice, an action stemming from a detailed report by a prominent short seller, Hindenburg Research, that alleged numerous accounting violations in Microchip Technology's financial reports. The issues ranged from improper revenue recognition, inaccurate cost calculations, and potential misappropriation of funds to more serious circumstances.
