Friday, September 8, 2006
Broadcom Uncovers More Option Errors
Irvine-based Broadcom is reporting this morning that it has uncovered more option errors in its accounting. The firm said that it expects that the expenses recorded in its restatements will be at least twice the previously announced $750M it said it would record for non-cash, stock-based compensation recorded in the years 2000 through 2003. Broadcom had originally announced the restatement in July. The additional charges come from stock grants at the firm between June 1998 and May 2003, which the company said it also found differed from measurement and grant dates. Broadcom is one of a large number of technology firms under scrutiny by the SEC over stock option grant compensation, a total that the SEC says now involves over 100 high tech companies.