SAN JOSE, Calif. The list continues to grow in the so-called stock option scandal in the semiconductor industry.
Applied Micro Circuits Corp. Wednesday (May 31) announced that it is reviewing the
company's historical stock option grant practices and related accounting.
This review, according to AMCC, "is proactive and voluntary and was initiated in response to
recently reported industry issues around option pricing practices."
Pending the completion of the review, AMCC's board "has recommended that the special meeting of
stockholders to be held today to approve a proposed option exchange and a proposed amendment and restatement of the company's 1992 stock option plan
be adjourned until June 30, 2006."
The annoucement follows a growing number of firms in the same boat. In recent weeks, Altera, Brooks Automation, KLA-Tencor, Power Integrations, Rambus and Vitesse have separately announced a series of internal and external probes over alleged misuse of stock options.
Programmable logic supplier Altera Corp. Tuesday (May 30) reaffirmed previously given second quarter guidance and said that it expects to report "several million dollars" of expense related to the company's previously announced review of historical stock options granting practices.
In addition, KLA-Tencor Corp. Tuesday said that it received notice from the U.S. Securities and Exchange Commission (SEC) of an informal inquiry relating to past stock option grants.
KLA-Tencor, based here, said it will cooperate fully with this investigation.
Chip equipment giant KLA-Tencor last week said that U.S. federal prosecutors are investigating the timing of stock option grants made by the company, according to online reports. KLA-Tencor has formed an independent board panel to probe options grants over the past 10 years.
In a terse statement, memory specialist Rambus (Los Altos, Calif.) Tuesday announced that the audit committee of the company's board “has commenced an internal investigation of the timing of past option grants and other potentially related issues.”