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Post a CommentTaking Stock: The Unfolding Stock Option Investigation
Staff Reporters -- Electronic News, 3/8/2007
Electronic News continues to follow the fallout of companies re-examining their stock options granting practices and has collected news stories accounting the events of this ongoing controversy.
Atmel to take $125M backdating charge 4/30/2007Atmel is set to pay some $125 million in compensation charges for a decade-long history of stock options backdating that the company largely blamed on the actions of former CEO George Perlegos. SEC files backdating charges against former Apple CFO, general counsel 4/25/2007
The SEC has filed charges against Apple's former general counsel and former CFO for participating in a backdating scheme that illegally saved the company nearly $40 million in expense charges. However, Steve Jobs and the company itself will not incur any major punishments for the backdating because of what the SEC called "swift, extensive, and extraordinary cooperation" in the investigation. Cirrus CEO steps down when faced with backdating evidence 3/8/2007
David French has resigned as president and CEO of Cirrus Logic after a special committee found evidence of his participation in illegal backdating of stock options; the company expects to record an expense in the range of $22 million to $24 million when it makes restatements for periods of illegal backdating between 1997 and 2005. NEC could lose Nasdaq listing 3/8/2007
NEC could be taken off of the Nasdaq stock market in April due to repeated SEC form filing delays caused by its ongoing stock options probe.
Atmel to file delayed SEC forms in June 3/7/2007
Atmel plans to file its delayed annual report to the SEC in June and expects the filings to reflect financial charges for its participation in the illegal backdating of stock options.
SEC wraps Altera stock options probe 2/20/2007
The Securities and Exchange Commission has formally notified Altera that its investigation related to the company's historical stock option practices has been terminated and that no enforcement action has been recommended.
MIPS stock scores continued Nasdaq listing 2/5/2007
Processor architectures and cores provider MIPS Technologies Inc. has received a pass from the Nasdaq listing qualifications panel granting its request for continued listing on the Nasdaq stock market. The continued listing is not without qualifications, however.
Apple feels heat from stock options spotlight 2/2/2007
In a delayed report filed with the Securities and Exchange Commission, the Cupertino, Calif.-based consumer electronics maker disclosed that it had received additional informal requests for documents and information relating to stock option grants made to CEO Steve Jobs and others.
Stock option saga claims another Nasdaq victim 1/31/2007
Comverse Technology Inc. has received word from Nasdaq that its common stock will indeed be delisted from the market.
Cirrus Logic granted continued Nasdaq listing 1/31/2007
Cirrus Logic Inc. has received notice from the staff of Nasdaq that, despite its tardy filing of regulatory Securities and Exchange Commission forms, its stock will continue to be listed on the Nasdaq market.
Microtune to pay $8.5 million for stock options misdeeds 1/23/2007
Microtune Inc. today announced that it has filed with the Securities and Exchange Commission (SEC) its delayed reports, clearing the company of any SEC trouble, but at a $8.5 million price.
San Jose-based FPGA market leader Xilinx Inc. must be breathing a sigh of relief this week following its announcement Monday that the U.S. District Court for Northern District of California has dismissed the consolidated shareholder derivative lawsuits that were filed against members of the company's board of directors and certain company officers. Microtune Concludes Stock Options Probe 12/29/2006
Plano, Texas-based RF chip maker Microtune Inc. said this week it has wrapped up its stock option investigation, finding evidence of illegal backdating but "no intentional wrongdoing" by its current CEO, CFO, general counsel, or board of directors.
Apple Wraps Backdating Probe 12/29/2006
The consumer electronics superstar is set to incur an $84 million finance expense as a result of its participation in fraudulent stock options backdating practices
Vitesse Finds Evidence of Stock Option Backdating 12/20/2006
Vitesse Semiconductor finds evidence that members of its former senior management team backdated and manipulated the grant dates of stock options, utilized improper accounting practices, and prepared or altered financial records to conceal those practices; the company estimates the resulting expense at $120 million.
Maxim CEO, Founder Retires 12/20/2006
John Gifford, founder and CEO of Maxim Integrated Products elects to retire as CEO for medical reasons; Tunc Doluca becomes CEO on Jan. 1.
Broadcom Investigation Uncovers History of Stock Options Backdating 12/18/2006
The SEC issues a formal order of investigation after Broadcom confirms that it is guilty of engaging in the now-notorious practice of illegal backdating of stock options.
Sanmina-SCI Reports Delay in Annual Report Filing Due to Stock Option Query 12/15/2006
The San Jose-based electronics contract manufacturer has notified the SEC that it is unable to file its annual report on time due to its stock option backdating investigation.
Atmel Granted Continued Nasdaq Listing 12/11/2006
Nasdaq's listing qualifications panel has granted Atmel's request for continued listing on the market, despite the company's ongoing stock options-related troubles.
Xilinx Clears SEC Stock Options Probe 11/30/2006
The SEC has wrapped up its investigation of Xilinx's stock options granting practices and has found no evidence of backdating.
Use of incorrect measurement dates for certain option grants for the period from fiscal 2000 through 2006 result in an aggregate non-cash charge of $127 million for stock-based compensation and associated payroll tax expense at Nvidia.
Broadcom Receives Second Nasdaq Notice 11/17/2006
The beleaguered company has received yet another warning from the Nasdaq stock market over SEC filings delayed by the company's on-going stock options woes.
Three leading industry players received Nasdaq delisting warning letters. Broadcom Granted Continued Nasdaq Listing 11/3/2006
After a delisting threat due to stock options investigation-related issues, Broadcom has been notified by Nasdaq that its stock will continue to be listed on the market. Stock Options Scandal Leaves Trail of Toasted Execs 10/25/2006
The industry’s ongoing stock options backdating probes have spurred an exodus of shamed execs, some forced to walk away from long-term posts.
KLA-Tencor Takes $400M Options Charge; Levy Exits 10/17/2006
KLA-Tencor wraps up its internal stock options investigation with plans to pay an extra $400 million when it restates years of financial records; company founder and chairman Kenneth Levy announces his retirement.
Altera Fingers Former CEO and General Counsel in Options Problems 10/17/2006
Altera said in a document filed with the U.S. Securities and Exchange Commission that a former CEO and a former general counsel designated stock option grant dates that were at the lowest closing date in December of the years from 1996 through 2000.
Amkor Showdown with Bondholders Next Week 10/6/2006
Amkor has upped the ante with its bondholders, threatening to file for Chapter 11 bankruptcy if the bondholders persist in their demand that the company pay off its debt immediately, according to a report.
Dell Dealt Nasdaq Delisting Threat 9/21/2006
Dell receives a Nasdaq staff determination letter indicating it is not in compliance with the filing requirement for continued listing on the market.
William Ruehle, Broadcom's senior VP and CFO, decides to "accelerate his retirement" as a result of the company's ongoing stock options granting review.
AMCC to Record $200M in Stock-Based Expenses 9/15/2006
AMCC is set to restate its financials for fiscal years 2000 through 2002 and will record an additional $200 million in non-cash stock-based compensation expense.
MIPS Files for Extension of SEC 10-K Filing 9/14/2006
Although the IP core provider is filing for an extension of its annual report, it doesn’t expect to be able to meet the deadline for the extension.
KLA Files with SEC for Annual Report Extension 9/14/2006
In the second action of this type today, the San Jose-based capital equipment provider has requested an extension to file its Form 10-K annual report with the SEC.
Marvell Subject to Nasdaq Delisting 9/13/2006
The company has received a notice that it is subject to delisting from the Nasdaq market due to stock options-related woes.
Linear: No Options Misconduct 9/12/2006
Linear Technology has completed its internal investigation of stock option backdating and found no misconduct or fraud, and expects no restatements of financials.
Dell Delays Quarterly Filing 9/11/2006
The PC giant said investigations by the SEC, the U.S. Attorney, and the possible need to restate previous financials led to its delay in filing its Form 10-Q.
Broadcom's Stock Woes Double 9/8/2006
Broadcom will need to record at least $1.5 billion in non-cash stock-based compensation expenses, twice the amount the company previously expected.
The IRS will team with the U.S. Attorney's local stock options backdating task force in Silicon Valley. Linear Contacted By IRS Over Stock Options 9/8/2006
Linear Technology Corp. has received an information document request from the IRS in relation to the company's stock options granting practices. SEC Probing More Than 100 Companies 9/7/2006
The Securities and Exchange Commission told a Senate panel this week that it is investigating more than 100 companies for stock options fraud -- 25 percent more than it previously said it was probing. Altera Financials Restatement Estimate: $28M-$38M 9/5/2006
The programmable logic provider affirmed its Q3 guidance and said it would seek a further extension on filing its last three quarterly reports in order to complete its work on its internal stock option backdating investigation and subsequent restatement of financials. MIPS Launches Stock Options Investigation 8/31/2006
MIPS Technologies starts an internal investigation of its stock option granting practices that is likely to delay its Form 10-K filing.
Atmel Regains Nasdaq Compliance 8/29/2006
Atmel receives word that it is in back compliance with Nasdaq after George Perlegos' board resignation. Semtech's Chair Steps Down 8/28/2006
Semtech's John Poe exits the company's chairman of the board seat amid stock options-related issues. Ousted Atmel CEO Pens Heated Resignation Letter 8/24/2006
Atmel's board of directors receives a letter from recently fired former CEO and president George Perlegos, resigning from his position as the board's chairman and asserting "illegal and unethical" actions by its members.
Vitesse Rejects Request for Early Debt Payment 8/22/2006
Embattled IC vendor Vitesse turns down an attempt by a trustee to collect early payment of $96.7 million in convertible subordinated debentures due in 2024. Broadcom Faces Delisting Threat 8/21/2006
Broadcom receives a staff determination notice from the Nasdaq threatening delisting of its stock due to its delayed Form 10-Q filing. Asyst Receives Nasdaq Non-Compliance Notice 8/18/2006
After notifying Nasdaq that it would not be able to file its most recent quarterly report and annual report, the capital equipment provider has been notified it is no longer in compliance with continued listing on the Nasdaq Global Market. Amkor to Restate 7 Years of Financials 8/17/2006
Amkor will amend financial statements from 1998 through 2005 and Q1 of 2006 to record expenses from backdated stock options. Altera Gets Second Notice from Nasdaq Exchange 8/17/2006
The programmable logic provider said the notice was expected after Altera had missed two quarterly report filing deadlines; the company has until the end of September to file its delayed reports.
Rambus Gets Nasdaq Delisting Threat 8/17/2006
The memory interconnect IP provider will request a hearing before a Nasdaq committee to stop the delisting; at the same time, Rambus continues its internal investigation of historical stock option grant practices that has delayed its filing of its most recent quarterly report. Xilinx Clears Stock Investigation 8/16/2006
The coast is clear for programmable logic player Xilinx, which concluded its internal stock options investigation and found no evidence of fraudulent practices in the company's options granting history.
Former Rambus CEO Resigns from Board Amid Options Scandal 8/16/2006
Geoff Tate, CEO of Rambus from 1990 through 2005, resigns from the company's board of directors after a committee found the occurrence of stock options backdating during his reign.
Brooks Automation files all necessary restatements and reports to the SEC by its August 15 deadline, keeping it on the exchange.
Amkor Under Fire for Missing SEC Deadline 8/15/2006
Amkor Technology receives a host of warnings from the Nasdaq, U.S. Bank and Wells Fargo after failing to file its Form 10-Q with the SEC by last week's deadline.
PMC-Sierra Finds Options Dating Errors, Delays 10-Q 8/14/2006
While PMC-Sierra used incorrect accounting measurement dates for certain stock option grants, those errors were not the product of any deliberate misconduct by the company's executives, staff or members of its board of directors, the high-speed broadband communications and storage chip provider claims.
This marks the second earnings report the programmable logic provider has failed to file with the SEC; following its options investigation, Altera expects that its restatement of earnings for 10 years will be material and may result in a determination of material weakness. Nvidia Discloses Options Backdating 8/11/2006
he graphics chipmaker revealed the ongoing investigation in an abbreviated statement of its Q2 financials, which included only revenues and not any earnings figures; revenue climbed 20 percent year-over-year. Ex-Comverse Execs Slammed With Backdating Charges 8/11/2006
Three former execs of software company Comverse Technology Inc. are charged with manipulating millions of stock option grants. Atmel Hit With 2nd Shareholder Suit 8/11/06
Shareholders of the troubled IC supplier have filed another suit against the company. Apple Delays Form 10-Q SEC Filing 8/11/2006
The Mac creator has notified the SEC that it will be unable to file its Form 10-Q by the deadline.
Broadcom Delays Q2 Filing 8/10/2006
The wireless chip giant said it would delay the filing pending the completion of its internal investigation of stock option backdating.
Apple to Restate Numbers 8/4/2006
The consumer electronics giant discovers additional evidence of irregularities in its internal investigation of stock option grants, and will likely restate its finances.
Asyst Sales Up Modestly, Confirms Option-Granting Suit Filed 8/3/2006
As part of its partial financial filing, the company discloses that a purported shareholder derivative action was filed in California against various officers and directors of the company regarding the granting of stock options.
Altera Granted Continued Nasdaq Listing 8/2/2006
After facing the threat of delisting from the Nasdaq for SEC filing delays, the company has been granted continued listing subject to certain conditions.
Troubles are compounding at Atmel: the company has fired four execs over the misuse of travel funds, amid growing attention to the practice of stock options backdating.
Brooks Takes $64.5M Hit 8/01/2006
Brooks Automation files an amended Form 10-K with the SEC due to its stock option troubles, recording additional cumulative expense to the tune of $64.5 million.
Asyst Technologies will delay the filing of its Form 10-K and Form 10-Q with the U.S. Securities and Exchange Commission until it completes its inquiry into the company’s past stock option grants and practices.
Further Stock Stress at Semtech 7/20/2006
The troubled company is set to restate years of financial statements amid growing allegations of stock option backdating.
Rambus to Restate Earnings, Faces Possible Delisting 7/19/2006
After an audit committee finds errors in Rambus stock options records, the company delays its 10-Q filing and faces possible delisting from the Nasdaq.
Xilinx Delays Earnings Report 7/19/2006
Plagued by the industry's wide-spread stock options granting scandal, Xilinx will postpone its fiscal Q1 2007 earnings release, originally scheduled for July 20, due to an unfinished independent investigation into its options granting practices.
Broadcom plans to restate results for the past five years and record additional noncash expenses in excess of $750 million related to stock option granting. Apple Discovers Stock Option Irregularities 6/30/2006
Add consumer electronics giant Apple to the list of companies tainted with stock options-related trouble. An investigation at the company reveals questionable option granting between 1997 and 2001. KLA-Tencor Finds Stock Option Date Errors 6/30/2006
The San Jose-based capital equipment provider has also found problems in that actual measurement dates for financial accounting purposes of certain stock option grants issued in prior years likely differs from the recorded grant dates of such awards.
More Stock Troubles for Linear 6/29/2006
The United States Attorney's Office for the Northern District of California has requested information on the analog IC manufacturer’s practices and procedures regarding its past stock option grants Asyst Served with Subpoena 6/29/2006
Trouble continues to brew at Asyst Technologies, one of the many companies involved in the on-going semiconductor industry controversy regarding the alleged backdating of stock options.
AMCC Served Stock Subpoena 6/28/2006
AMCC has received a subpoena requesting documents relating to the company's stock option granting practices from the U.S. Attorney for the Northern District of California and has been contacted by the U.S. Attorney for the Southern District of California, which opened its own investigation into the company's stock option practices.
The IP company said its internal investigation into its options granting practices has revealed some errors in dating that may result in financial restatements that could lower earnings.
Vitesse Faces Delisting 6/27/2006
In more bad news for the company, Vitesse Semiconductor will be delisted from the Nasdaq as of the opening of the market on June 28.
The programmable logic technology company said that it expects to restate its financial statements for the last ten years after an internal investigation's preliminary results revealed potential problems with stock option grants and dating. Another Exec Bites the Stock Options Dust 6/20/2006
There’s no silver lining for Thomas P. Dunne, founder of SteelCloud, the latest company to be hit by the ongoing stock option granting practices controversy. SEC Investigates Linear 6/16/2006
Following suits files against Linear executives, more questions about the analog company’s stock option granting practices rise to the surface, this time from the Securities and Exchange Commission. Semtech Comes Under Stock Fire 6/15/2006
The semiconductor supplier is mired with trouble related to its allegedly questionable stock option granting practices and, admitting possible Nasdaq delisting, has delayed the filing of its Form 10-Q for the fiscal quarter ended April 30 past the extended June 14 due date. Xilinx, Maxim Subject of More Stock-Option Litigation 6/15/2006
In the latest rash of stock-option-related lawsuits, a second suit is filed against Xilinx, and another against Maxim, following the SEC’s announcement that it is investigating the company. Asyst Delays 10-K Filing 6/14/2006
The company said it will delay filing its Form 10-K with the SEC as it completes an internal investigation of its stock option grants. SEC Looks at Broadcom 6/12/2006
The SEC is conducting an informal inquiry of the company based upon media reports, making Broadcom the latest semiconductor company to be questioned by the federal agency about stock option granting practices. Maxim Faces SEC Investigation 6/8/2006
Maxim Integrated Products has been contacted by the U.S. Securities and Exchange Commission regarding an informal inquiry relating to its past stock option grants and practices. Xilinx Execs Sued Over Options 6/8/2006
The board of directors and certain officers at Xilinx are the subjects of legal action taken over the backdating of stock options. M-Systems Investigates Stock Practices, Postpones Offering 6/1/2006
M-Systems says it cannot proceed at this time with a previously announced stock offering as it has launched an internal probe into its prior stock option grants. Brooks Sued by Shareholders 6/01/2006
The lawsuit, which alleges breaches of fiduciary duties and unjust enrichment in connection with certain prior stock option grant practices, is the latest scar on the Chelmsford, Massachusetts-based company’s record. Rambus Examines Stock Option Practices 5/31/2006
Rambus has become the latest in a chain of semiconductor companies to face an investigation of its stock option granting practices.
SEC Investigates KLA-Tencor 5/31/2006
The Securities Exchange Commission has launched an informal investigation into microchip equipment maker KLA-Tencor's stock option granting practices.
The Sunnyvale, Calif.-based networking chip supplier has its stock option practices under review in a proactive and voluntary move.
Options Grant Review at Altera to Cost Millions 5/30/2006
In its mid-quarter update the programmable logic company reaffirmed that Q2 sales will be 7 percent to 10 percent above Q1's $292.8 million, but added that it expects several million dollars of additional expenses from the cost of investigating its stock options grants. SEC Looks into Altera’s Books 5/26/2006
Altera’s internal investigation of its stock options granting practices has turned into an SEC matter. The company further faces a subpoena from the office of the United States Attorney for the Northern District of California relating to the granting of stock options.
Linear Target of Shareholder Suits Over Options 5/26/2006
The analog chipmaker said that two stockholder suits have been filed against it in U.S. District Court over alleged options backdating, and added that it planned to vigorously defend itself against any claims of wrongdoing.
KLA-Tencor Forms Committee to Investigate Stock Option Practices 5/25/2006
Reacting to subpoenas, KLA-Tencor appoints a special committee of independent directors to conduct an internal investigation relating to past stock options granted to employees during the 1995 to 2001 timeframe.
Analog Devices Receives Subpoena 5/24/2006
Analog Devices Inc. becomes the latest company to face inquiries about its stock options practices.
Shareholders Sue Maxim Over Options 5/24/2006
Upping the ante of repercussions from the recent scandals surrounding option grants and pricing, shareholders have filed suit against Maxim Integrated Products and certain officers and directors of the company.
Six More Semi Companies Under Options Scrutiny 5/23/2006
Merrill Lynch has identified six semiconductor companies with suspicious stock options grants and pricing patterns in a new report it issued this week.
Brooks Automation Receives Subpoena 5/23/2006
The stock options mess continues to expand at Brooks as the company now faces a grand jury document subpoena requesting records pertaining to the granting of stock options.
KLA-Tencor Comes Under Options Microscope 5/22/2006
The company has been served by the U.S. Attorney's office in its ongoing investigation of options backdating.
SEC, U.S. Attorney Turn Up Heat on Vitesse 5/19/2006
In a week that already marked the firing of its CEO, CFO and an executive VP, Vitesse Semiconductor Corp. announced that it is now under investigation by the U.S. Securities and Exchange Commission and U.S. Attorney's office in New York.
Altera Faces Delisting Threat 5/18/2006
With an internal investigation underway into historical stock option grants, Altera had delayed filing its quarterly report; now Nasdaq says that delay is violating the stock exchange's rules and Altera must request a hearing to avoid delisting.
Brooks Note Holders Look to Cash In 5/18/2006
Brooks Automation Inc. felt more of the ramifications of its delayed quarterly report filing this week as it received notification that it was in breach of its obligations to certain note holders.
Vitesse Dumps CEO, CFO, VP 5/17/2006
Amid its growing turmoil, Vitesse Semiconductor fires its CEO, CFO and an executive VP, replacing the CEO and CFO immediately, and admits further issues with its credit facility.
International Rectifier to Correct Cash Flow Statements 5/16/2006
Following a review of its financial statements, the chip provider must refile its fiscal Q1 and Q2 to be in compliance with SFAS No. 123R rule.
Brooks Restates Financials Due to Stock Option Missteps 5/12/2006
In light of recent investigations in semi companies’ stock option practices, Brooks Automation will restate its financials from fiscal years 1999 through 2005. .
Altera Reviews Stock Option History 5/9/2006
Altera joins a growing list of companies double checking its stock option practices and issues concerning options granted, and, in doing so, says it will be unable to file its Form 10-Q for Q1 by the May 10 deadline.
Power Integrations Involved in Stock Options Snafu 5/5/2006
The power conversion analog IC supplier’s chairman and CFO resign as an internal investigation reveals discrepancies over recorded and actual stock option grant dates.
More Trouble for Vitesse 5/1/2006
Vitesse Semiconductor is being sued by shareholders after announcing some of its previous financial statements should not be relied upon.
Vitesse Financial Statements May Be Inaccurate 4/27/2006
The Camarillo, Calif.-based communications chip provider says its recent Q1 results as well as the last three years of financial statements may not be accurate.
Stay tuned to Electronic News for continuing coverage of the semiconductor industry’s stock option investigations.
