Altera to Restate 10 Years’ Data Amid Review of Stock Options

Programmable microchip maker Altera Corp. said Wednesday that it expected to restate financial reports for the last decade to show higher costs because of stock option grants for which it had not properly accounted.

Altera said it expected to show higher noncash expenses from 1996 to 2005 after a special committee looking into option practices reached a preliminary conclusion that the actual dates of some grants differed from the recorded dates.

“Altera believes that these charges are material and, accordingly, expects to restate its financial statements for the fiscal years ended 1996 through 2005,” the San Jose-based company said.

Altera said in May that it was investigating its stock option practices, an announcement that came as U.S. authorities were looking into whether companies improperly backdated options.

Backdating refers to the practice of basing the exercise price of options not on the date they are actually given but on a date when a company’s share price is especially low, resulting in a potentially bigger payout.

Altera said it expected to report second-quarter revenue on July 24 but added that it would be unable to disclose additional data until the committee had completed its investigation and the company had restated its previous reports.

The company is expected to show revenue of nearly $318 million for the second quarter, according to the average analyst forecast on Reuters Estimates.

Shares of Altera rose 37 cents to $17.83 in regular trading. Extended trading of the stock was suspended as the company disclosed the expected restatement.