SUPER MICRO'S ACCOUNTING DELAY CAUSES $6 BILLION WEALTH DECLINE FOR CEO CHARLES LIANG

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Amara

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Jul 18, 2024
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Super Micro Computer Inc. (NASDAQ: SMCI) has seen its shares plummet by 19%, leading to a significant $800 million reduction in CEO and Chairman Charles Liang’s net worth. This drop, which occurred after the company announced a delay in filing its annual financial report, caps a staggering loss of nearly two-thirds of Liang’s fortune since its peak in March 2024.

The San Jose-based company revealed that it needs more time to evaluate its internal controls, a move that followed a damning report by short-seller Hindenburg Research. The report alleged serious issues, including "glaring accounting red flags" and evidence of undisclosed related-party transactions, among other concerns.

Liang's net worth, which soared to over $9 billion in March due to strong demand for Super Micro’s servers used in artificial intelligence applications, has now dropped to $3.5 billion, a 62% decline. However, despite the sharp fall, Liang's wealth is still up by $1.5 billion for the year.

Liang, originally from Taiwan, co-founded Super Micro with his wife Sara Liu in 1993. Under his leadership, the company shifted its focus to high-efficiency power systems and components, driving revenue from $1.2 billion in 2013 to $7.1 billion in the 2023 fiscal year. This latest setback marks a significant turning point for both Liang and the company as they navigate these financial and reputational challenges.