Apple Corp. said on Monday that its third quarter earnings to the SEC would be delayed due to a stock option â€œirregularitiesâ€ found at the company.
The California-based consumer technology firm said it would delay its third quarter earnings report. The reason for the delay had to do with stock options . An internal audit was currently being conducted by the firm to see which financial figures would be affected by this scandal.
â€œIt expects to have to restate past results in order to take non-cash charges for compensation costs related to stock option granting practices,â€ Apple said in its filling with the SEC.
Meanwhile, analysts were concerned that the revelations by Apple were just the star of others.
â€œThis language has caused many investors to wonder if Apple's accounting difficulties are now expanding beyond the options irregularities previously cited,â€ wrote Bill Shope, the JP Morgan analyst. â€œThus, the reference to significantly higher revenues and expenses was merely a qualitative statement of fact, not a signal that results will differ from the recent earnings release, he said.
The company said on June 29 that an internal investigation discovered irregularities related to the issuance of certain stock option grants made between 1997 and 2001. A special committee of Appleâ€™s outside directors were hired along with independent counsel, to perform an investigation, and the SEC was informed.