GEMS one more time:
Glenayre Tech Completes Options Review
Friday 03/30/2007 7:03 PM ET - Dow Jones News
DOW JONES NEWSWIRES
Glenayre Technologies Inc. (GEMS) said on Friday that it completed its stock-option review and, with the exception of one option grant, didn't find evidence of backdating options, awarding options before favorable news or after materially damaging news.
The New York-based telecommunications equipment maker said in a filing with the Securities and Exchange Commission that its investigation, which was conducted by a special committee, did find improper grant-date recording.
Glenayre Technologies said the impact from recognizing stock-based compensation expense resulting from the investigation is expected to be $1.35 million from 1993 to 2003.
The company disclosed on March 6 that it discovered improper option-grant date recording and as a result would restate past financial results for fiscal years ended 2000 to 2003. Glenayre Technologies's investigation found no evidence that anyone in the company breached their fiduciary duties or acted in bad faith.
The one backdated stock option grant came on May 31, 2000. The options granted on that day to certain employees carried an exercise price based on a subsequently executed written consent. However, the company believes that the approval of the grant most likely didn't occur until June 2, 2000.
As a result, the company increased certain historical financial statements to increase stock-based compensation expense by $806,000.
-Jared A. Favole, Dow Jones Newswires; 202-862-9207; jared.favole@dowjones.com
> Dow Jones Newswires
03-30-07 1902ET
Copyright (c) 2007 Dow Jones & Company, Inc.
Is this a good Stock?
Anything I say in the post above is my OPINION only. (Ne buvez pas l'kool-aide.)...and don't be a MARKEY.
