SAN FRANCISCO Atmel Corp. is the latest high-tech company to acknowledge it would restate a significant portion of its historical financials in connection with past stock options granting practices, saying Monday (Oct. 30) its financial statements for 2003 through 2005, plus the first quarter of 2006, should no longer be relied upon. Atmel (San Jose, Calif.) said it would restate financials for those years as well as pervious years.
Financial statements for fiscal years prior to fiscal 2003 should also no longer be relied upon, the company said.
Atmel said its audit committee, with the assistance of independent legal and forensic accounting experts, reached a preliminary determination that the actual measurement dates for certain stock options differed from the recorded measurement dates. The company said its audit committee has not completed its work nor reached final conclusions and is continuing its investigation into the circumstances that gave rise to the differences.
Because the audit committee's investigation is ongoing, Atmel said it has not identified all stock options for which the accounting measurement dates may have been incorrectly determined. As a result, the company said it has not determined the final amount of additional charges related to the matter, nor has it determined possible tax consequences.
Dozens of high-tech companies have been investigating historical stock options granting practices for months. Several, including Rambus Inc., Altera Corp. Applied Micro Circuits Corp. and Amkor Technology Inc. have acknowledged that they would restate earnings and take tens of millions of dollars in charges as the result of stocks options probes. Communications chip supplier Broadcom Corp. said last month its new expects stock-based compensation expenses to account for at least $1.5 billion.