The Mac Observer

Skip navigational links

You're viewing an article in TMO's historic archive vault. Here, we've preserved the comments and how the site looked along with the article. Use this link to view the article on our current site:
Apple May Restate Profits

Apple May Restate Profits

by , 8:40 AM EDT, August 4th, 2006

Apple Computer issued a warning on Thursday that it may have to restate financial statements to account for past stock option grants. At issue are some back dated stock option grants that were issued between 1997 and 2001.

Apple issued a statement that says in part "The Company will likely need to restate its historical financial statements to record non-cash charges for compensation expense relating to past stock option grants. The Company has not determined the amount of such charges, the resulting tax and accounting impact, or which periods may require restatement. Accordingly, the Company today filed a Form 8-K stating that the financial statements and all earnings and press releases and similar communications issued by the Company relating to periods commencing on September 29, 2002 should therefore not be relied upon."

The investigation is still underway, so Apple is delaying the filing of its Form 10-Q for the quarter that ended July 1, 2006.

Apple first announced that it had discovered some irregularities in stock option grants at the end of June. The company hired independent counsel to investigate the matter further. In early July, two law suits were brought against the company over the irregularities.

Apple stock is currently trading in the pre-market at US$69.59, down 2.22 (3.19%).


If you are interested in Apple's stock, join our forum members in the Apple Finance Boards, a moderated forum for Apple Investors and people who are interested in Apple's financial dealings. For other stories regarding Apple's stock activity, visit our updated Apple Stock Watch Special Report.

Recent Headlines - Updated April 24th

Thu, 1:30 PM
Goodbye Net Neutrality: FCC Backs Down on Internet Traffic Equality
1:00 PM
Satechi LED Desk Lamp: Cool, Glare-free and Adjustable Illumination
11:10 AM
Rumor Claims New MacBook Air Models Only Days Away
10:21 AM
Analyst: Apple Needs to Choose iPhone Margins or Marketshare
9:21 AM
AAPL Jumps $44 in Pre-market Trading after Strong Q2 Earnings Report
Wed, 8:43 PM
ACM 251: What’s in an Upgrade, Apple’s Google Gambit, the Future of iPhone
8:00 PM
Apple Reports Record March iPhone Sales in Q2 2014
7:31 PM
Apple’s Stock Jumps $40 (7.7%) in After-Hours Session
7:11 PM
China Earns Apple $10B, Ready for More
6:57 PM
Apple’s Tim Cook Explains His Enthusiasm for iPad
5:41 PM
Burberry’s Angela Ahrendts Starts as Apple Retail Boss Next Week
5:05 PM
AAPL Expands Dividend Program to $130B, Announces 7-to-1 Stock Split
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!