Monster May Restate Results to Boost Option Expense

Online job recruitment firm Monster Worldwide Inc. said Tuesday that although an internal review of stock option practices was still in its early stages, the company believed that it might need to restate financial results for the year that ended Dec. 31 and prior years to record additional stock-based compensation charges.

Monster made the disclosure after the end of regular trading, where its shares fell 52 cents to $37.24. The stock fell to $36.60 in the after-hours market.

The New York-based company said it hadn’t determined exactly which results would have to be restated, or the magnitude of such charges, but did forecast that a potential restatement would not materially hurt 2006 earnings. Monster will report second-quarter results and discuss market trends and its outlook on July 26.

Because of the ongoing independent review and potential effect of stock-based compensation expense on prior periods, Monster said it might not be able to file its financial statements for the quarter ended June 30 on a timely basis.

As of Monday, 58 companies are under Securities and Exchange Commission or Justice Department scrutiny for stock option practices, and at least six other companies not under federal investigation have launched internal probes.

Separately, Monster said it named Sal Iannuzzi as a director, effective immediately. Iannuzzi is president and chief executive of Symbol Technologies Inc., based in Holtsville, N.Y.

With Iannuzzi’s appointment, the Monster Worldwide board expands to eight directors, six of whom are independent.