Options Delay Sanmina Earnings

Sanmina-SCI (SANM) said Monday that it found potential inconsistencies between the actual and recorded dates of some of its stock-option awards.

As a result, the electronics manufacturing services company said it delayed the filing of its 10-Q for the quarter ended July 1.

A committee of "disinterested" members of Sanmina-SCI's board of directors, plus outside legal counsel and accountants, have been investigating the company's stock-option practices dating back to Jan. 1, 1997.

While the investigation is ongoing, "the special committee's preliminary review has discovered potential discrepancies between the actual dates of measurement used for financial accounting purposes and the recorded grant dates of certain stock option awards," the company said.

Sanmina said it cannot yet determine the impact to its financial statements, including which accounting periods may be affected, or any stock compensation charges or taxes.

The company said it is working to resolve the issues so it can file its financial statements -- including any restatements -- within the next 30 days.

Sanmina shares were off by a dime, or 3.1%, to $3.13 in recent trading.

>To order reprints of this article, click here: Reprints