UPDATE 1-Emcore says it likely back-dated stock grants
Mon Nov 6, 2006 6:28pm ET
(Adds details throughout, previous NEW YORK)
SAN FRANCISCO, Nov 6 (Reuters) - Semiconductor products maker Emcore Corp. (EMKR.O: Quote, Profile, Research) said on Monday it is reviewing its stock option practices and found it likely back-dated some grants, joining a growing list of companies grappling with the issue.
Emcore said it expects to record $24 million in noncash charges for stock-based compensation expense, and that the charges would mainly affect its fiscal years 2000 to 2003.
Also on Monday, information technology provider Insight Enterprises Inc. (NSIT.O: Quote, Profile, Research) said it received an informal inquiry from securities regulators relating to its stock option grant practices. Beverage company Hansen Natural Corp. (HANS.O: Quote, Profile, Research) said it appointed a special committee to probe such grants.
More than 150 companies have launched internal investigations or are the subject of U.S. Securities and Exchange Commission probes to determine if the dates of stock options were manipulated.
Emcore said because of the review, its financial statements included in its annual and interim reports along with related information in announcements such as earnings press releases should not be relied on for periods beginning with fiscal year 2000.
Meanwhile, company said it expects fourth-quarter revenue from continuing operations to be about $35 million, below expectations of $40 million.
Emcore attributed the shortfall primarily to its photovoltaics division, which the company said did not receive export licenses covering three international satellite programs in time to ship products during the fourth quarter.
It also said it expects the revenue shortfall to hurt gross margins in the fourth quarter, when expenses will also rise due to the internal probe into past stock option grants.
The Somerset, New Jersey-based company also said it would move its headquarters to Albuquerque, New Mexico, in fiscal 2007, having sold its remaining New Jersey operations. (Additional reporting by Dan Wilchins)
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