Apple’s Press Release:
As Apple previously announced, an internal investigation discovered irregularities related to the issuance of certain stock option grants made between 1997 and 2001. A special committee of Apple’s outside directors has hired independent counsel to perform an investigation, and the Company has informed the SEC. As a result of the ongoing investigation, the Company will delay the filing of its Form 10-Q for the quarter ended July 1, 2006.
Although the investigation is ongoing, the Company has discovered additional evidence of irregularities. In light of this, management has concluded, and the audit committee of the board of directors agrees, that 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 Company is focused on resolving these issues as quickly as possible and plans to file its Form 10-Q and any required restated financial statements following completion of the investigation.
Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning desktop and notebook computers, OS X operating system, and iLife and professional applications. Apple is also spearheading the digital music revolution with its iPod portable music players and iTunes online music store.
Source: http://www.apple.com/pr/library/2006/aug/03update.html
Related articles:
Shareholder’s options suit against Apple alleges ‘striking pattern that could not have been chance’ – July 11, 2006
Apple announces update regarding stock option grants – July 05, 2006
UBS: stock options probe unlikely to hurt Apple – June 30, 2006
Apple joins growing list of companies entangled in stock option ‘irregularities’ – June 29, 2006
Apple to investigate stock option grant ‘irregularities’ made between 1997 and 2001 – June 29, 2006
Time to short.
Oh boy…the (temporary) downward plunge in APPL’s stock price begins now. It was close to $70 and the close today, but it’ll go back down close to $60 before it starts heading north again next week after Jobs’ keynote.
I like that short bio of Apple at the end. Very kind and accurate.
An unusual situation for investors. Any drop in prior years earnings might look bad, but would result in a tax refund of about 30% of the additional expenses – increasing Apple’s already hefty cash holdings.
Besides, those years are past – the Macs and iPods have been in the hands of the users for long enough that some are probably looking at their next Mac. What counts is how Apple is doing today and how they will do tomorrow.
If I was still an investor in Apple stock I would be looking at how big the tax refund would be for those years in the past.
Brian,
That’s Apple’s standard corporate profile. It’s on all their financial statements.
(SIGH) … gonna be a tuff day tomorrow.
Shame, shame shame on you Apple!
Apple: “What the hell? EVERYONE is doing it, just smoke some and be cool.”
Just like M$, another greedy company.
MDN Word: “blood” Blood on the hands at Apple.
Coincidentally,
Ampar ignited the personal sarcasm revolution in the 1970s with the Ampar II and reinvented personal comedy in the 1980s with the Smack-in-Tush.
“I like that short bio of Apple at the end. Very kind and accurate.”
It’s called a boiler plate and they put it at the end of every press release they…. release.
Unlikely to have any effect on the stock for more than a week at best. WWDC will make everyone forget about this anyway.
WSJ’s almost right, but don’t have any delusions of AAPL taking off after the keynote.
WWDC is focused on the Mac, not the iPod. While I fully expect Leopard and the new Mac Pro to impress, the Street will be looking for new iPod/iPhone/iTunes announcements to counter Microsoft’s Zune vaporware/FUD.
They (likely) won’t get such an announcement, and the bears will have fresh, new ammo they’ll use to pound AAPL down into the fifties once again.
FWIW, my advice is get out of AAPL now while it’s still relatively high, wait for the post WWDC plunge, and get back in sometime this fall. If you’re smart, you’ll time it just before Steve pulls some new “Zune killing” device out of nowhere at a special media event on any given Tuesday.
obvious — I’m gonna remember this post of yours, you f-ckwit. So when AAPL continues its meteoric rise tomorrow and all throughout next week I’ll be able to quickly and easily locate you … so that I can rip out your eyeballs and piss on your [puny] brain.
Go sell stupid someplace else. We’re all stocked up here.
“Go sell stupid someplace else.”
There’s a somewhere else?
“Jenny and me go together like peas and carrots.”
AAPL will probably drop Friday and this may go on for a short time. Makes the WWDC Keynote very important. Fortunately Apple can respond as fast as Intel can deliver and I would bet Steve J has been putting pressure on Intel every since he learned the situation could be serious. I expect him to be aggressive in his announcements, which is going to off set the downward pressure on the stock a bit.
I hope Steve Jobs isn’t going to jail.
I hope Steve Jobs doesn’t retire or die. That would kill the stock, promptly
I guess Steve’ll have to give back the jet and fly coach.
” width=”19″ height=”19″ alt=”cheese” style=”border:0;” />
geez dude/tte, chill, why the projection? Most of us here are on the same Apple page, no need to beat anyone up. If ‘obvious’ is unfortunately right, are ya gonna apologize?
Apple, one of the few bright spots of GWB’s America, stop tarnishing it with your anger issues, please.
Ampar has hereby won the “Best Post(s) of the Thread Award”
Hmmm. Apple needs an updated spreadsheet more than I do.
I don’t want to point fingers or perpetrate consipiracy theories, but I guess I am going to anyway. To wit – Is it curious to anyone else that these discrepancies come to light following the departure of Apple CFO Fred Anderson?
Isn’t he off living on an island somewhere beyond extradition?
How much you want to bet they were forced to use Excel. Enough said.
Your wish has been granted. Be careful what you do next, it may detonate your machine.
Thanks, Dankman!
I’d like to invest $5,000 in Ampar stock. What are you trading at?
AMPR is a penny stock and an EXCELLENT investment opportunity!* We are looking to buy Napster and turn it into a foreign bride and ham curing business.
*Ampar Inc. does not control or guarantee stock pricing information provided on his web site. Data and information is provided for informational purposes only, and is not intended for trading purposes. Neither Ampar Inc. nor any of its data or content providers shall be liable for any errors or delays in the content or for any actions taken in reliance thereon. Stock prices on his site are delayed at least 20 minutes.
Cooking the books!
Restating profits (and now maybe losses) all the way back to 2002….oooh – too many people drinking the koolaid inside Apple HQ.