Human Capital & Careers

Another Bad Dating Experience

Sanmina-SCI is the latest to stumble over the dating of stock options.
Stephen TaubSeptember 14, 2006

Sanmina-SCI Corp. said it will probably restate its results for the past four fiscal years as a result of a review of its stock option policies and practices dating back to January 1, 1997.

The company added that an investigation being conducted by a special committee of its board is nearly completed. The custom manufacturer said the special committee has not reached a final conclusion, but it did find that the actual date of determination for certain past stock option grants differed from the originally selected grant dates.

Because the prices at the originally selected grant dates were lower than the prices on the actual dates of determination, the company said it will incur additional charges to its stock-based compensation expense which were not included in the financial statements.

The company warned the amounts of these charges are material even though it has not yet determined the final amount of the additional charges.

However, Sanmina said it does not believe that any restatement will have a material impact on its historical revenues, cash position or non-stock option related operating expenses.

The company also said it plans to complete the restatements and file its amended annual and quarterly filings “as soon as practicable.”