Optical components maker Sycamore Networks Inc said the SEC has started a formal investigation into certain stock-options granted from 1999 through 2001 that were erroneously accounted for under GAAP. In August 2005, Sycamore said it was to restate its accounts for 1999 to 2001 after an internal inquiry led to $33.8m worth of adjustments.
Applications and database management firm Quest Software Inc said its board was forming a special committee of independent directors assisted by independent legal counsel and advisers to investigate stock-option grant practices and related accounting. Independent research had questioned the timing of its stock grants and Quest said it would not be in a position to comment until the investigation is completed.
Chipmaker Semtech Corp said it has received a letter from the SEC asking it to voluntarily provide information regarding stock options and it intends to fully cooperate.
The one rebellious note was struck by semiconductor equipment maker Novellus Systems Inc, which reacted strongly to being named in a Merrill Lynch report regarding options pricing. Novellus said it had reviewed its process of granting options and had not found any irregularities.
