Amkor to Restate 7 Years of Financials
Staff Reporter -- EDN, August 17, 2006
Amkor Technology Inc. will restate more than seven years of previously issued financial statements thanks to stock options issues.
Specifically, the IC test and assembly provider expects to restate financials to record additional non-cash, stock-based compensation expense related to backdated stock options in fiscal years 1998 through 2005 and Q1 2006, Amkor reported Wednesday.
In July, Amkor's board established a special committee to conduct a review of Amkor's historical stock option grant practices. The review has not yet been completed.
However, the independent investigation has thus far identified a "a number of occasions on which the measurement date used for financial accounting and reporting purposes for option awards granted to certain Amkor employees was different from the actual grant date," the company’s statement said, adding that Amkor intends to file its restated financial statements "as soon as practicable."
This is only one of the stock options-related headaches the company has had this week. On Tuesday, Amkor announced that it faces possible delisting from the Nasdaq stock exchange for not filing its Form 10-Q to the Securities and Exchange Commission by last week's deadline.
By far, Amkor is not the only tech company facing the task of restating its finances. Among others, Apple, Semtech, Rambus and Broadcom have all undertaken the task of remedying inaccuracies in past financial statements related to stock options.
For Electronic News’ continuing coverage of the industry’s ongoing stock option investigation, click here .
