Human Capital & Careers

Backdating Spears Trident

The digital TV technology maker will restate back to 1994 and take estimated charges of $50 million as a result of incorrectly dated stock option g...
Stephen TaubJanuary 25, 2007

Trident Microsystems said it will restate its financial statements going back to 1994 to correct the accounting for past stock option grants.

The maker of digital TV technology also said it will record additional non-cash charges covering its stock-based compensation expense of between $40 million and $50 million, though it also warned that the final compensation expense could exceed this estimate.

The actual charge, the company said, will depend on the outcome of the company’s investigation, its preparation of its restated financial statements, and the completion of an audit of those restated financial statements.

Like scores of other companies caught up in the ongoing backdating scandal, Trident, which has a $1 billion market capitalization, explained that a special committee investigating its previous stock options grants determined that the actual measurement dates for financial accounting purposes differed from the recorded grant dates of such awards.

The company also warned that it will delay the filing of its annual report for the fiscal year ended June 30, 2006 and for the quarters ended September 30, 2006 and December 31, 2006. It added it will file these reports as well as its restatements “as soon as practicable.”

Separately, Prudential Financial Thursday upped its recommendation on Trident’s stock to “overweight” from “neutral.”

On Tuesday, CIBC analyst Daniel Gelbtuch reiterated his “sector outperformer” rating and asserted that the stock is a “steal,” according to the Associated Press.