MANHASSET, N.Y. Applied Micro Circuits Corp. has announced that an independent audit Committee is reviewing the company's historical stock option grant practices and related accounting.
Applied Micro Circuits (Sunnyvale, Calif.) initiated the review in response to recently reported industry issues around option pricing practices. The audit committee will be assisted by outside legal counsel.
Pending completion of the review, the company's board of directors has recommended that a stockholders meeting to approve a proposed option exchange and a proposed amendment and restatement of the company's stock option plan be adjourned until June 30.
For Applied Microcircuits, the investigation is the latest trouble for the storage and network semiconductor supplier, which cut its workforce 5 percent less July and has seen a number of management changes.