Computer business Apple recently filed its financial reports last minute on the heels of a problem with backdating stock options.  The computer business stated it was charged $84 million for misdating its options, some of which had been appropriated to the head of Apple Steve Jobs.

Apple insists there was nothing underhanded about the mistake, but has admitted that, like many other computer businesses, has some stock options with changed dates awarded to executives.  This type of change has the potential of making stock options more profitable when they are cashed in, particularly if the date offered a lower price.

There have been over 150 computer businesses accused of backdating that are currently being investigated by the Securities and Exchange Commission (SEC).  Computer business Apple has been cooperative by providing the SEC and the Department of Justice with the details of its own internal investigations.  

Computer business Apple also reported results for the year ending in September 2006.  The report showed that the company experienced a 39% increase in sales.  Mac laptops experienced a 43% sales increase and iPods 69% sales increase, which were the two main forces in the increase in sales.  Profits were up 50%.

When the computer business filed on December 29, spokespeople stated confidence that the company has fixed problems with its stock options.  Similarly, the company reiterated its faith in Steve Jobs and the senior management team of Apple.  The filing confirmed findings of an October internal investigation that was set up by a special committee; there was no wrongdoing on the part of current computer business management.  However, 15 stock option awards between 1997 and 2002 do reveal grant dates that come before the approval of the grants.  The investigation conducted by the computer business, while clearing top executives did uncover some potential issues with two former unnamed executives.

The cause of the problem with computer business Apple and its stock options remains unclear, but the incident affected Apple’s share price for the day following the announcement.  

Blogged By:  Computer Consulting Kit