Atmel investigates stock-option practices

SAN JOSE, Calif. — Chip maker Atmel Corp. on Tuesday (July 25) said that its board has initiated an independent investigation regarding the timing of past stock option grants and other potentially related issues.

Atmel, based here, also has postponed its second quarter 2006 earnings announcement and conference call previously scheduled for July 25.

The company will not announce its second-quarter results or file its quarterly report on Form 10-Q for the quarter ended June 30, until after the completion of the investigation.

Atmel does not expect the investigation to be completed prior to the due date for the Company's second-quarter 10-Q, August 9, or the extended due date of August 14, 2006. Atmel executives will refrain from commenting further until the independent investigation is concluded.

More than a dozen U.S. electronics companies have been caught up in the stock options . Recently, Securities and Exchange Commission Chairman Christopher Cox said the agency would issue new guidelines on the backdating of stock options "that will more clearly circumscribe the bounds of acceptable conduct."