As previously announced, KLA-Tencor's board has appointed a special committee of independent directors to conduct an internal investigation relating to stock options granted to the employees of the company. As disclosed on June 30, the committee has reached a preliminary conclusion that the actual measurement dates for financial accounting purposes of certain stock option grants issued in prior years likely differ from the recorded grant dates of such awards.

"As a result of the ongoing investigation and the potential for restatement, the company is unable to provide detailed GAAP or non-GAAP financials for items other than revenue and bookings for the quarter or year ended June 30, 2006," according to San Jose-based KLA-Tencor on Monday (July 24).

"In addition, the company will not file its annual report on Form 10-K until after the completion of the investigation. The Company does not expect the investigation to be completed until after the date the Form 10-K is required to be filed," it said.