MIPS Launches Stock Options Investigation
Staff Reporter -- EDN, August 31, 2006
MIPS Technologies Inc. is the latest addition to the slew of companies investigating stock options granting practices.
The company has initiated a voluntary review of historical stock-based compensation practices and related potential accounting impact by forming a special committee, consisting of independent directors, to review the company's historical option grant practices and the company's accounting for its option grants.
In doing so, MIPS said its annual report on Form 10-K for its fiscal year ended June 30, due to be filed with the Securities and Exchange Commission (SEC) on or before Sept. 13, will likely be delayed past the due date.
MIPS is certainly not the only company that has delayed SEC filings because of a stock options investigation. Rambus, Apple and Broadcom are just a few of the companies that have missed SEC deadlines in recent months due to the industry's stock options probe.
