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| Friday, December 01, 2006 |
Shares of network components maker Finisar Corp. sank Thursday in after-hours trading the company said it launched a voluntary investigation into its historical stock option grants and that restatements will likely follow.
The company's stock plunged 20 cents, or 5.2 percent, to $3.63 in after-market trading on the INET electronic exchange, after adding 8 cents to close at $3.83 on the Nasdaq. The shares have ranged between $1.73 and $5.49 over the past year.
Finisar joins a list of at least 187 companies that have disclosed Securities and Exchange Commission, Justice Department or internal probes into possible stock options backdating, according to an AP review.
The company said it reviewed grants made since its initial public offering in 1999 and concluded that it is likely that measurement dates for certain stock option grants differed from the recorded grant dates, and that it will probably need to restate past historical statements to correct the accounting. The company said it does not yet know the financial impact of the restatements, and that the investigation is ongoing.
Finisar also said it will delay filing full fiscal second-quarter results until the probe is complete.
Revenue for the three months ended Oct. 29 rose 25 percent to $108.2 million, from $86.6 million a year ago. While sales fell in the middle of the company's own guidance to $106 million to $112 million, they missed Wall Street's view. Analysts polled by Thomson Financial were looking for revenue of $110 million.
Finisar said optical subsystems and components revenue rose 27.8 percent to $99 million in the quarter. Network test and monitoring systems revenue were flat at $9.2 million.
On Wednesday, the company said its board of directors had approved a medical leave of absence for Chief Financial Officer Stephen K. Workman. |
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