Apple Keeps Core Intact

Apple Computer(AAPL Quote) shares marched higher Friday, following the company's anxiously awaited annual report which seemed to secure CEO Steve Jobs' role at the head of the company.

In a 10-K report filed with the Securities and Exchange Commission early Friday, Apple said it recorded $84 million in noncash expenses to account for backdated stock options.

The relatively small restatement was a relief to investors, but their main cause for celebration centered around Jobs, whose future had been called into question as details of the stock option irregularities have come to light.

Apple issued a statement Friday saying that the board believes the stock option problems have been corrected and that it has "complete confidence in Steve Jobs and the senior management team."

Shares of Apple were up 5.1%, or $4.13, to $85 in midday trading Friday.

Jobs co-founded Apple 30 years ago and is considered crucial to the success of the company, which has evolved from a computer maker to a consumer electronics and entertainment powerhouse, thanks to products like the iPod MP3 player and the iTunes music store. Some analysts have recently speculated that a Jobs departure could cause a precipitous drop in the company's stock price.

Apple reiterated previous comments that the company's internal investigation into stock option backdating found that Jobs was "aware or recommended the selection of some favorable grant dates," but that he did not benefit from the grants or understand the accounting implications.