Sycamore Networks Provides Update on Stock Option Investigation and Announces Intention to Restate Financial Statements for Prior Fiscal Periods
Tuesday September 19, 5:27 pm ET
CHELMSFORD, Mass.--(BUSINESS WIRE)--Sept. 19, 2006--Sycamore Networks, Inc. (NASDAQ: SCMR - News), today provided an update on its previously disclosed investigation into stock option grants and announced its intention to restate financial statements for certain prior fiscal periods to reflect the effects of additional non-cash stock-based compensation expense.
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Sycamore reported that, while the investigation is ongoing, the Company has reached a preliminary conclusion that the appropriate measurement dates for financial accounting purposes of certain stock option grants differ from the recorded grant dates of such awards. As a result, upon management's recommendation, Sycamore's Board of Directors has determined that the Company will need to restate historical financial statements to record additional non-cash charges for stock-based compensation expense related to past option grants. Accordingly, the financial statements, and related notes for fiscal years 2003 through 2005 included in the Company's Annual Report on Form 10-K for fiscal 2005 and for subsequent interim periods in 2006 and its earnings releases and similar communications for such periods should no longer be relied upon. Certain of these financial statements have been previously restated in connection with an earlier independent investigation related to certain stock options granted during calendar years 1999 through 2001. The Company has not yet determined the aggregate amount of additional non-cash charges for stock-based compensation expense, nor has it determined the resulting tax impact, if any, or which specific periods require restatement. The Company does not currently anticipate that the outcome of the investigation will require any material adjustment to its historical revenues, non-stock option related expenses or cash position.
Sycamore further reported that it intends to file any SEC filings required to be restated and its Form 10-K for the fiscal year ended July 31, 2006 as soon as practicable after the investigation is complete.
About Sycamore Networks
Sycamore Networks, Inc. (NASDAQ: SCMR - News) is a leading provider of intelligent networking solutions for fixed line and mobile network operators worldwide. From multiservice access networks to the optical core, Sycamore products enable network operators to lower overall network costs, increase operational efficiencies, and rapidly deploy new revenue-generating services. Sycamore's global customer base includes Tier 1 service providers, government agencies, and utility companies. For more information, please visit www.sycamorenet.com. |
