MANHASSET, N.Y. After an independent review of its stock options grant practices, broadband and communications semiconductor supplier PMC-Sierra Inc. determined that certain options awarded from 1998 through 2001 differ from measurement dates previously used to determine stock-based compensation expense from 1998 to 2002.
PMC-Sierra (Santa Clara, Calif.) expects new accounting measurement dates to be applied to the affected option grants. As most of the stock options in question were cancelled in an option exchange program in 2002, the new measurement dates will not affect operating results for 2003 and subsequent years.
The company expects to make adjustments to its financial statements starting with Dec. 31, 2002. The amount of the adjustment within stockholders' equity is estimated to be less than $100 million. PMC-Sierra does not expect to restate income or cash flows from 2003 on.
Because of the stock options investigation, PMC-Sierra did not file its Form 10-Q for the quarter ended July 2 on the due date of Aug. 11, 2006. The company said it would file the 10-Q, as well its Form 10-K/A for 2005 and 10-Q for the quarter ended April 2, once an Audit Committee completes reviewing all the company's financial statements.