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Apple to Restate Numbers
Staff Reporter -- Electronic News, 8/4/2006
The industry-wide stock option troubles are compounding at Apple Computer Inc. The consumer electronics superstar has discovered additional evidence of irregularities in its internal investigation into stock option grants.
As a result of the investigation, Apple will delay the filing of its Form 10-Q for the quarter ended July 1, and will likely need to restate its historical financial statements to record non-cash charges for compensation expense relating to past stock option grants, the company said.
Click here for more news on the unfolding stock option investigation.
Apple has not determined the amount of such charges, the resulting tax and accounting impact, or which periods may require restatement. Thursday, Apple filed a Form 8-K stating that the financial statements, earnings and press releases issued by the company since September 29, 2002 should not be relied upon.
In June Apple announced that an internal investigation had discovered irregularities related to the issuance of certain stock option grants made between 1997 and 2001.
"The company is focused on resolving these issues as quickly as possible and plans to file its Form 10-Q and any required restated financial statements following completion of the investigation," Apple said in a statement.
Apple is not the only tech company facing the task of restating its finances. Semtech, Rambus, Broadcom and Vitesse have all undertaken the task of remedying inaccuracies in past financial statements related to stock options.
