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| Wednesday, November 29, 2006 |
Semiconductor company Sigma Designs Inc. said Tuesday its fiscal third-quarter revenue nearly tripled, but the company did not post full earnings results because of an ongoing review of its stock option granting practices.
For the quarter ended Oct. 28, revenue totaled $25.1 million, versus $8.5 million in the year-ago period.
Analysts, on average, forecast sales of $23.1 million, according to a poll by Thomson Financial.
The company said the sales increase came from more chipset sales to makers of Internet Protocol TV set-top boxes.
Sigma said its review of past options grants is not complete. The company is one of at least 185 that have disclosed internal or federal probes into their stock options practices.
At issue is the practice of backdating, in which companies issue the options retroactively to coincide with low points in the stock price. This can boost profits for options recipients when they sell the stock at higher prices. While not necessarily illegal, backdating must be disclosed to investors and accounted for properly.
Sigma has acknowledged that some of the actual measurement dates for its past option grants "may differ from the recorded measurement dates."
Shares are up $1.34, or 5.9%, to $24.19. on the Nasdaq. |
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