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What didn’t ship in 2006? Wired has the list of all the stuff that didn’t happen this year.
# 8 on the list is the much-fabled ‘iPod Killer’. Microsoft did indeed ship the Zune in November, but no firm is closer to shipping an iPod killer than they were two or even three years ago More …
Reports have indicated that Apple CEO Steve Jobs did not personally profit from the the stock option back-dating issue. He knew about them but was unaware that they were illegal. Apple stock did very well after the announcement.
Today, Apple issued a press release on its internal investigation of back-dating stock options for some executives and filed with the SEC Form 10-Q for the third quarter of 2006 and Form 10-K for the 2006 fiscal year ending September 30. Both SEC forms had been delayed due to the investigation. The total effect of the issue is to understate compensation by $84M for the period beginning in 1997 though 2006, a seemingly mere drop in the bucket.
Here is the full text of Apple’s press release:
Apple® today filed its Form 10-Q for the quarter ended July 1, 2006 and its Form 10-K for the fiscal year ended September 30, 2006 with the Securities and Exchange Commission (“SEC”). Both filings had been delayed pending the conclusion of an independent investigation by the special committee of the board of directors into past stock option practices and the resulting restatement of the Company’s financial results. Apple undertook this investigation on its own initiative and has informed the SEC and the U.S. Attorney’s Office of the results.
Based on an analysis of the findings of the independent investigation, the Company has recognized total additional non-cash stock-based compensation expense of $84 million after tax, including $4 million and $7 million in fiscal years 2006 and 2005, respectively. The restatement arises solely from certain stock option grants made between 1997 and 2002; the investigation found no grants after December 31, 2002 that required accounting adjustments.
“The special committee, its independent counsel and forensic accountants have performed an exhaustive investigation of Apple’s stock option granting practices,” in a joint statement said Al Gore, chair of the special committee, and Jerome York, chair of Apple’s Audit and Finance Committee. “The board of directors is confident that the Company has corrected the problems that led to the restatement, and it has complete confidence in Steve Jobs and the senior management team.”
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