Progress Software Restatement

Progress Software (PRGS Quote - Cramer on PRGS - Stock Picks) set plans to restate earnings going back to Dec. 1, 1995.

The Bedford, Mass., business software company said it will correct errors relating to its accounting for stock-based compensation. Progress' audit committee continues to probe the matter but has concluded that stock option grant dates differ from accounting dates.

Progress expects noncash stock compensation costs to amount to $20 million to $30 million for the last 10 years.

Progress said it hasn't yet determined the amount to be recorded in any specific period, nor has it determined the tax consequences that may result from these matters or whether any tax consequences will give rise to additional tax liabilities.

The news comes as the government probes accounting and disclosure issues related to so-called stock option backdating at some 80 companies. Execs at two tech companies have been charged with securities fraud related to options backdating schemes and other inquiries continue.