Sanmina-SCI provides update on 10-Q fling
Aug 15, 2006
Sanmina-SCI Corporation (the "Company") (Nasdaq: SANM) provided an update on the investigation into the Company's stock option administration practices relating to its officers, directors and employees, and on the status of the filing of its 10-Q for the third quarter ended July 1, 2006.
As previously announced, a special committee comprised of disinterested members of Sanmina-SCI's Board of Directors was formed to conduct an independent investigation into the Company's stock administration practices dating back to January 1, 1997. The special committee is being assisted by independent outside legal counsel and accounting consultants. Although this investigation is still on-going, the special committee's preliminary review has discovered potential discrepancies between the actual dates of measurement used for financial accounting purposes and the recorded grant dates of certain stock option awards. These initial findings are not conclusive, however, as the investigation has not yet been completed. As a result, the Company cannot determine at this time the financial impact to the Company's financial statements including the amount of any non-cash stock compensation charges, any resulting tax, or which accounting periods might be affected. Accordingly, the Company was unable to file with the Securities and Exchange Commission its 10-Q for the quarter ended July 1, 2006 by the required filing deadline and has further concluded that it will not be able to file such statements within the five day extension period otherwise allowed.
The Company said it is focused on resolving these matters quickly so as to enable the Company to file its financial statements, including any restatements of such if necessary, within the next 30 days (although no assurance can be given that the filing will not be further delayed).