SAN FRANCISCO Arriving fashionably late to the stock options investigation party that has been raging for months, intellectual property (IP) supplier MIPS Technologies Inc. said Wednesday (Aug. 30) it has initiated voluntary review of historical stock-based compensation practices and related potential accounting impact.
MIPS (Mountain View, Calif.) said its board of directors has formed a special committee, consisting of independent directors, to review the company's historical option grant practices and the company's accounting for its option grants. The committee said it would retain independent outside legal counsel to assist it in its review.
MIPS said it would likely delay filing its annual report for fiscal 2006 with the U.S. Securities and Exchange, pending the outcome of the review. The filing is due Sept. 13.
Dozens of companies have been implicated in a swirling scandal over historical stock options granting practices since early this year. Many of these companies have also been forced to delay SEC filings. Several have been threatened with having their security delisted from the Nasdaq exchange for failing to file on time.