Rambus To Restate Earnings
Staff Reporter -- EDN, June 27, 2006
Rambus’s internal investigation into its options granting practices has revealed some errors in options dating that may result in restatements of the company’s financials for previous years.
That’s the preliminary conclusion of in Rambus’s ongoing investigation of its options grants, conducted by its audit committee. The Los Altos, Calif.-based IP company said that actual measurement dates for certain stock option grants issued in prior years differ from the recorded dates for such awards.
“If the audit committee determines that these charges are material, Rambus may need to restate its financial statements for prior fiscal periods,” the company said in a statement. Rambus said it has not yet determined the tax impact of the restatement. But any restatement would have the effect of decreasing reported operating income and net income or increasing loss from operations and net loss.
Rambus said it does not expect any such restatement to have an impact on its historical revenues nor on its determination and ongoing efforts to pursue fair compensation for its patented inventions.
Rambus expects to announce Q2 revenue results and Q3 revenue guidance on July 19, 2006. However, Rambus said it will not be in a position to announce additional financial results for the second quarter until the Audit Committee has completed its investigation.
