Altera disclosed that it will restate its financials for the past 10 years to correct errors related to accounting for stock-based compensation expense. It is the tenth company to restate results because of option-dating practices, according to Bloomberg.
The maker of programmable microchips explained that the restatement stems from an internal investigation that found the actual measurement dates for certain stock option grants issued between 1996 and 2000 differ from their recorded grant dates.
Altera had earlier disclosed that its board of directors had established a special committee to review the company’s historical stock option practices and related accounting. In Thursday’s announcement, the company stressed that the committee is continuing its review.
It also stated that for the 10-year period, any stock-based compensation charges incurred as a result of the restatement would cut reported income or increase reported loss from operations; decrease reported net income or increase reported net loss; and decrease reported retained earnings. Altera noted that does not expect the restatement to have any impact on historical revenues.
Because the special committee’s review is ongoing, the company warned that there may be additional years subject to restatement and that the impact to fiscal year 2005 may be different than currently anticipated. The company also announced that it likely had a material weakness in internal control over financial reporting as of December 30, 2005.
Altera, which has already delayed the filing of its first-quarter financials, added that it will file as soon as practicable after the completion of the committee’s investigation. The company also stated that it expects to announce second-quarter revenues and third-quarter revenue guidance on July 24, pending completion of the investigation.