Friday, August 11, 2006
Dot Hill Reviews Stock Options, Delays 10-Q Filing
Carlsbad-based Dot Hill Systems, a maker of data storage systems, said last night that the firm is reviewing its historical stock option grants practices, as a result of the industry's widespread stock option scandal. Dot Hill said that its audit committee has begun a self-initiated review of the firm's stock option grant practices. The firm said that it has reviewed its option grant practices back to 1999, and has identified discrepancies during the 2000 through 2003 fiscal years. As a result, the company said it will be unable to complete and file its quarterly report for the three months ended June 30, 2006. However, the firm said that it believes the cumulative impact of the discrepancies is worth less than $500,000.