Ceradyne May Take Charge for Stock Options

Ceradyne Inc., which makes ceramic plates for body armor vests, said it had launched a review of its stock option grants in the last 10 years and might take a charge of $2 million or more to correct its accounting for some grants.

Costa Mesa-based Ceradyne, which is set to report quarterly earnings Friday, said initial results of its review showed that measurement dates used in the accounting for options may differ from recorded dates on some grants made from 1997 to 2003.

The company said it might have to adjust its results to reflect any inaccuracies, which would result in a cumulative after-tax charge of less than $2 million for 1997 to 2005. But it said the final results of the review might lead to a higher figure.