Already facing delisting by the NASDAQ stock exchange, Apple Computer said Friday it was delaying the filing of a mandatory annual report with the U.S. Securities and Exchange Commission as it finishes a probe into questional grants of stock options to some company executives. Apple also said it has now determined it will have to restate some prior period earnings reports to reflect new accounting for those stock options.
In a filing with the SEC, Apple said it missed its Dec. 14 deadline for filing its 10K annual report with regulators for the fiscal year that ended Sept. 30. It said that it "currently anticipates that the Form 10-K will be filed on or before the 15th calendar day following the prescribed due date according to Rule 12b-25, together with its Form 10-Q for the quarter ended July 1, 2006."
It is not known how extensive its earnings restatements will be. In its filing, the company said "management has concluded, and the audit committee agrees, that Apple will need to restate its historical financial statements to record non-cash charges for compensation expense relating to past stock option grants. The Company is in the process of finalizing its conclusions regarding the amount of such charges, the resulting tax and accounting impact, and which periods require restatement."
Earlier this year, Apple reported that after an internal investigation it found questionable stock option practices performed over several years by two former employees. Because of its probe into the options accounting, Apple delayed filing its mandatory quarterly report with the SEC for the quarter that ended July 1. That set into motion a delisting warning to Apple from NASDAQ; the stock exchange, though, said it would give the company a reprieve from delisting if it came into filing compliance by Dec. 29 -- the date Apple said it now anticipates filing its 10K.