Friday, July 14, 2006
Broadcom To Restate Financials on $750M Of Stock Options
Irvine-based Broadcom, one of the high tech firms under scrutiny by the SEC for the timing of options grants, said early this morning that it will restate its financial statements for the years 2000 through 2005, as well as for the first quarter of 2006. The firm, which had earlier reported that it was reviewing its options grant process, said that it had determined that for certain option grants awarded during the years 2000-2002, allocations to individual recipients or formal corporate approvals had not been completed as of the original accounting measurement dates. It said that as a result, it expects to record additional, non-cash stock-based compensation expenses in excess of $750M. The firm also said because of the review and an ongoing audit, it is unlikely that it will be able to file a timely SEC quarterly report for the quarter. However, the firm did say that based on results to date, no issues have been identified in equity awards issued to its co-founders, CEOs, or board of directors. Broadcom is listed on the Nasdaq as BRCM.