Human Capital & Careers

Applied Micro Files Delayed Financials

Final tally includes $95.2 million of additional stock-based compensation offset by $20.9 million of tax benefits.
Stephen TaubJanuary 10, 2007

Applied Micro Circuits has wrapped up its internal investigation of past options-granting practices and has completed its overdue regulatory filings.

The maker of microprocessors, storage products, and other network equipment announced last September that it would restate its financials back to 1998 in order to recognize up to $200 million in noncash stock-based compensation expense. The company explained at the time that it should have used different measurement dates in computing compensation costs for some stock-option grants.

The final adjustment, said the company, worked out to a net $74.3 million, which included $95.2 million of additional stock-based compensation offset by $20.9 million of tax benefits. The restatement involves options granted in fiscal years 1999 through 2002 that affected the financial statements for fiscal 1999 through the first quarter of fiscal 2004.

Applied Micro also stated that its investigation did not uncover any other accounting issues of concern and that none of the management team involved in the granting of the problematic options is currently employed by the company.

“We are pleased to have the restatement process behind us and are eager to focus our full attention on growing our business and creating value for our stockholders,” said president and chief executive officer Kambiz Hooshmand, in a statement.