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To: Johnny Canuck who wrote (43436)	7/21/2006 2:43:19 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 68885

Broadcom Earnings on Hold By Scott Moritz Senior Writer 7/20/2006 5:11 PM EDT The Irvine, Calif., communications chipmaker met sales expectations for the second quarter, posting a top line of $941 million, up 4.5% from the first quarter. But the company declined to offer a profit report for the most recent quarter, citing an ongoing probe into its stock option accounting. "Given the pendency of that review, which is ongoing, the company has limited the scope of its second quarter financial information released today," Broadcom said in a press release Thursday. Last week, Broadcom said an internal review showed some option grants were "backdated," potentially making holders' options more valuable. The company will restate previous financials and expects to take a charge of $750 million to reflect additional option expenses. Broadcom is one of dozens of companies involved with a review of curiously timed stock option grant dating. The practice has captured securities regulators' attention because it seems to be a crooked way to boost executive stock compensation at shareholders' expense. The news comes as Web switch maker F5 (FFIV - commentary - Cramer's Take) also chose Thursday to withhold its fiscal third-quarter profit report. F5 is another company under investigation for its suspiciously timed options grants. F5 says sales at the end of the most recent quarter were $100 million, up 6% sequentially. On Wednesday, Internet gearmaker Juniper (JNPR - commentary - Cramer's Take) reported in-line sales but withheld its earnings tally while it reviewed its own stock options backdating. Broadcom shares closed down 2% in regular trading Thursday at $26.35, then fell $1.25, or 5%, to $25.10 in after-hours trading.