Zeev's Turnips Patch-No Politics (ZEEV)

[madrose1]

08:02 BRCM Broadcom provides preliminary report on equity award review (27.89 ) -Update- *****

Co says its Audit Committee has preliminarily concluded that, for certain option grants awarded during the years 2000-02, the allocations to individual recipients and/or formal corporate approvals had not been completed as of the original accounting measurement dates. Consequently, the co expects to record additional non-cash stock-based compensation expense estimated to likely be in excess of $750 mln. No issues have been identified that affect equity awards issued to BRCM's co-founders or CEOs or any member of the Board of Directors. No equity award has been identified that was not authorized, or where any officer or director approved an individual equity award from which he or she personally benefited. The additional non-cash stock-based compensation expense will not affect the co's current cash position or financial condition. The Audit Committee has determined that BRCM should restate its financial statements for 2000-05 as well as 1Q06, and that the co's financial statements and the related auditors' reports for the affected periods should not be relied upon pending completion of the restatements.