Affymetrix Announces Update Regarding Stock Option Grants
Wednesday August 9, 5:00 pm ET
SANTA CLARA, Calif.--(BUSINESS WIRE)--Aug. 9, 2006--Affymetrix, Inc. (Nasdaq:AFFX - News) announced that as a result of its previously announced internal review into historical stock option granting practices it will restate its financial statements for certain options granted between 1997 and 1999. The review identified certain documentation lapses but did not find any pattern or practice of inappropriately identifying grant dates with hindsight in order to provide "discounted" or "in-the-money" grants.
The restatement is currently expected to reflect additional non-cash compensation expense from 1997 to 2003, the vesting period of the options. The restatement is also expected to reflect a tax benefit arising from this stock compensation expense. This tax benefit will be recorded in 2005, the year in which the company reduced its valuation allowance for certain deferred tax assets. The result will be to increase the company's previously reported net losses from 1997 to 2002, reduce previously reported net income for 2003, and increase its previously reported net income in 2005.
Affymetrix expects to file restated financial statements for the affected periods with the Securities and Exchange Commission during the current quarter. The company has filed a Form 12b-25 with the SEC indicating that its Form 10-Q for the quarter ended June 30, 2006 will not be filed on schedule. As a result of the restatement, the financial statements contained in the Company's Form 10-K for the year ended December 31, 2005 and its Form 10-Q for the quarter ended March 31, 2006 should no longer be relied upon. |
