TurboChef Slowed by Backdating Issue

The high-speed oven maker will restate results after concluding that stock-option dates need to be revised.
Stephen TaubJune 20, 2007

TurboChef Technologies Inc. may be known for its high-speed ovens, but irregularities in stock-option accounting have it falling behind in its required regulatory filings.

The company said it must restate prior results “to recognize material non-cash charges for stock-based compensation expense,” although it did not provide any details.

It said in a regulatory filing that preliminary conclusions suggest that different measurement dates should be used for some stock-option grants issued in the past. It did not identify any periods affected by a need to revise amounts, although TurboChef did say that its review of historical stock option grants covered the period from Jan. 1, 1997, to the present, and that it does not expect the restatement to affect periods after Dec. 31, 2005, except with respect to costs related to the investigation.

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TurboChef added that it will file its 2006 annual report, its restated financial statements for affected prior periods, and its latest March 31 quarterly report “as soon as practicable” after the completion of the review.

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