July 14, 2006
Broadcom to claim $750M charge for options backdating
Company restating financial results back to 2000
Recommend ThisBroadcom Corp. will record noncash expenses of more than US$750 million as it restates financial results back to 2000 because an internal review has found accounting problems with stock-option grants to employees, the company said Friday.
No problems with grants to senior executives, board members or company founders have been discovered so far, the microchip maker said. Some 95 percent of stock options granted since the company went public in 1998 have gone to employees other than those at the company's top.
Most of the additional expenses will be recorded for 2000 and 2003, the company said. The expenses will not affect Broadcom's cash balance, financial operations or its shareholders, the company said.
The company expects to restate financials for 2000-2005 as for the first quarter of 2006.
Other publicly traded companies have been investigated of late for allegations that stock-option prices particularly benefited top executives, while some companies also have been probed for allegedly improperly accounting for stock-option costs.
Shares of Broadcom (BRCM) were trading up at $28.78 in Friday midmorning trading on the Nasdaq exchange.
Broadcom makes networking semiconductors.
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