Sanmina-SCI Reports Delay in Annual Report Filing Due to Stock Option Query
By Ann Steffora Mutschler -- EDN, December 15, 2006
San Jose-based electronics contract manufacturer Sanmina-SCI Corp. reported today that it is filing a notification with the Securities and Exchange Commission (SEC) under Rule 12b-25 because it is unable to file its annual report on Form 10-K for the fiscal year ended September 30, on a timely basis.
As previously announced, the company's board of directors formed an independent special committee to review “certain matters” concerning the company's stock option administration policies and practices dating back to January 1, 1997, along with the related accounting implications.
Based on the final report and recommendations of the special committee, the company reported in October that a restatement of the company's historical financial results would be necessary in order to record additional stock-based compensation expenses.
The company says it is completing its preparation of, and its outside independent accounting firm is in the process of auditing the company's Form 10-K, but it intends to file its Form 10-K as soon as practicable, and in any event within the 15-day extension period afforded by SEC Rule 12b-25 under the Securities Exchange Act of 1934, as amended.
On December 13, the company filed its Form 10-Q for the period ended July 1. The financial statements, and related footnotes and disclosures contained therein have been adjusted to reflect the results of the investigation.
The company first said in August there may be problems with its stock option dating practices.
