Human Capital & Careers

BEA Systems Sees “Material” Charges

The software maker is the latest to run afoul of the ongoing backdating scandal.
Stephen TaubDecember 5, 2006

BEA Systems said it will restate previously issued financial statements after its audit committee determined that the actual measurement dates for certain stock options differed from the recorded measurement dates.

The company said the difference in these measurement dates will result in material non-cash, stock-based compensation expenses. BEA, which makes enterprise infrastructure software, has a $5.5 billion market cap.

However, BEA did not specify the amount of the revision or which periods will be affected.

The company explained the audit committee has not completed its work nor reached final conclusions, and is continuing its review of the circumstances that led to the differences in option measurement dates.

It also has not yet determined the tax consequences that may result.

Reuters noted that BEA is among more than 160 companies that have launched internal investigations or are the subject of federal probes stemming from earlier stock options grants.