KLA-Tencor to restate due to options
Oct 05, 2006
KLA-Tencor expects to restate past results after stock options probe finds discrepancies
KLA-Tencor Corp., a maker of semiconductor production equipment, said it will restate past results and book material additional costs after a probe into its historical stock option practices turned up discrepancies.
In a Securities and Exchange Commission filing, KLA-Tencor said a report by a special committee of the board discovered incorrect measurement dates were used for certain stock option grants made largely during the period from July 1997 to July 2002. The company said financial statements related to periods beginning in July 1997 should no longer be relied upon.
The San Jose, Calif.-based company said it plans to log material additional stock compensation costs during certain of those periods as a result. KLA-Tencor has not yet determined the amount of the costs.
In addition, KLA-Tencor said it will temporarily suspend employee participation in several equity incentive programs because the registration statements covering shares issuable under those programs incorporate those that will likely have to be restated. The blackout preventing employees from acquiring shares under that plan began Sept. 28 and ends on the day after the restated financial results are submitted to the SEC.