Internet
Monster May Restate
TSC Staff
07/11/06 - 05:42 PM EDT
Monster Worldwide (MNST) said it may need to restate earnings from 2005 and prior years to fix accounting errors related to stock-option grants.
The disclosure comes just a month after the online jobs site was told by regulators to preserve all relevant information in anticipation of a request for documents in connection with an informal investigation of stock-option grants.
Monster previously announced that a committee of independent members of its board has been conducting an internal review and analysis of all stock-option grants previously issued by the company. The committee of independent directors has retained independent outside legal counsel.
Monster said Tuesday that it may not be able to make a timely quarterly filing with regulators as its review of options practices continues.
"Although the review is in its early stages, the company believes that it may need to restate its financial statements for the year ended December 31, 2005 and prior years to record additional non-cash charges for stock based compensation expense relating to various stock option grants," Monster said. "The company has not yet determined which historical financial statements would be restated, the magnitude of the restatement, or the tax impact that may result from the matter. However the company expects that a potential restatement would not have a material impact on 2006 earnings."
Monster's remarks come a day after similar comments by CNet (CNET).