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 November 30th

Mon,12:40 PM
Three Ways to Protect your Apple Watch (and One Way Not To)
Fri,7:26 PM
$100 off iPad mini 4 for Black Friday
7:11 PM
iPad mini 2 for $199 at Walmart for Black Friday
6:18 PM
$100 and $125 off iPad Air 2 for Black Friday from Best Buy
5:23 PM
20% iTunes Cards from Best Buy Back on for Black Friday
5:15 PM
20% Off iTunes Cards from Ebay/PayPal
8:03 AM
Black Friday Blowout 15% Discount on TMO Deals
Thu,10:32 AM
Happy Thanksgiving from The Mac Observer!
Wed,7:53 PM
Awaken the Force with these Free Star Wars Apps
5:28 PM
How to Pair Bluetooth Headphones with Your Apple TV
4:40 PM
Pay What You Want for the Learn to Code Bundle
4:27 PM
ACM 334: Apple’s Mac Pro vs. The Devil’s Advocate
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!