MANHASSET, N.Y. Fabless semiconductor supplier Integrated Silicon Solution Inc. announced it is conducting a review of its historical practices in granting stock options.
ISSI (Santa Clara, Calif.) has filed a Form 12b-25 with the Securities and Exchange Commission, stating that it will be unable to file a timely quarterly Form 10-Q report for the fiscal quarter ended June 30, 2006 until the review is completed.
The company's Board of Directors has appointed a committee of independent directors to conduct this review that will cover all option grants since the company's initial public offering in Feb. 1995.
ISSI has also advised its independent registered public accounting firm, Ernst & Young LLP, of its review. The company expects to incur significant legal and professional fees for the quarter ending Sept. 30, 2006.
In addition, two purported shareholder derivative actions concerning the ISSI's stock option granting practices have been filed against selected ISSI current and former officers and directors in the U.S. District Court for the Northern District of California.
In a separate development, Microtune Inc. has announced it will be unable to file its Form 10-Q quarterly report for the quarter ended June 30, 2006 by the Aug. 9, 2006 filing deadline, because the previously-announced internal review of the company's stock option grant practices has not been completed.
Consequently, Microtune (Plano, Texas) has also filed a Form 12b-25 notification with the U.S. Securities and Exchange Commission.
Microtune's internal review of stock option grant practices covers the period from the company's IPO Aug. 4, 2000 through June 2006. At this time, the Audit Committee has not determined whether any accounting adjustment will be required.