Options Trouble Grows at Apple

Apple Computer Inc. said Thursday that it probably would need to restate earnings and would delay filing its quarterly report because of additional irregularities it had found in its accounting of stock options.

Apple is now among the best-known companies caught up in a scandal that has swept the technology industry. The Securities and Exchange Commission has more than 80 investigations underway to determine whether companies manipulated the prices of stock options given to executives.

Apple said in a regulatory filing that all financial communications issued since Sept. 29, 2002, should not be considered reliable.

On June 29, Apple announced an internal probe into irregularities related to the issuance of option grants and the hiring of an independent counsel to investigate.

It said it had informed the SEC of the probe.

Apple said Thursday that it probably would restate its historical financial data to record noncash charges for compensation expenses related to past option grants.

The company said it had not determined the amount of the charges, the resulting tax and accounting effects or which periods might require restating.

Apple has said one of the stock option grants was made to Chief Executive Steve Jobs, but it was subsequently canceled and resulted in no financial gain.

“We are refraining from any further comments until the independent investigation is concluded,” Apple spokesman Steve Dowling said Thursday.

Shares of Apple rose $1.43, or 2.1%, to $69.59.