Human Capital & Careers

Options to Spur Applied Micro Revision

The semiconductor maker reports that it should have used different measurement dates in computing compensation costs for some stock-option grants.
Stephen TaubSeptember 15, 2006

Applied Micro Circuits Corp. has reported that it will restate financials dating back to 1998 in order to recognize up to $200 million in noncash, stock-based compensation expense.

The restatement stems from a “substantially completed” internal review of the company’s stock-option-grant practices and related accounting. The semiconductor maker explained that it should have used different measurement dates in computing compensation costs for some stock-option grants.

The $200 million is mainly linked to options awarded during fiscal years 2000 through 2002, according to the company statement. Applied Micro promised to provide added details when it files its restated financials.

The restatement will occur “as soon as [it is] practicable,” the company said. In May, Applied Micro put off its annual meeting until June 30 so that its audit committee could review the company’s historical stock-option practices and related accounting matters.