“Just days before Jobs takes the stage at his company’s annual developer conference in San Francisco Monday, concerns about the stock option irregularities the company first announced on June 29th have escalated into a scandal,” Chris Kraeuter and Rachel Rosmarin report for Forbes.
“Apple Computer said Thursday it would probably have to restate earnings, and will delay filing its next quarterly earnings report. In a filing with the Securities and Exchange Commission, Apple said its financial statements for the years ended 2003 to 2005 should “no longer be relied upon.” The troubles go as far back as documents filed in September 2002, the company said,” Kraeuter and Rosmarin report.
“By midday Friday, shares of Apple were off almost 5%, to $66.18, a long way from where they were in early January when they hit an all-time high of $85. Two weeks ago, they’d skid to $50, as investors fretted about the lack of fresh products and the slowing growth of what the company’s got left to flog,” Kraeuter and Rosmarin report. “All of which has upped the stakes for Apple and Jobs, the company’s public face. He must show the world something new when he delivers the keynote at Monday’s conference. Really new. Something revolutionary, not evolutionary, that will excite the fans, grow the business–and change the subject.”
“The rumor machine was already churning ahead of Jobs’ speech: He is set to roll out a movie service, one Web site asserts. Could be a wi-fi iPod, predicts a Wall Street analyst. Other Apple watchers are still waiting for another stab at an iPod phone,” Kraeuter and Rosmarin report.
Full article with more specualtion about what Apple has up its sleeve here.
This too shall pass.
Apple warns of profit restatement dating back to 2002 – August 04, 2006
Apple loses 3.5% to $67.15 in premarket trading – August 04, 2006
Apple announces update regarding stock option grants – August 03, 2006
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