This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Sycamore Completes Options Review

Sycamore (SCMR - Get Report) shares got a lift early Wednesday after the company said it completed its second stock option review and plans a restatement.

The Chelmsford, Mass., optical-networking shop found that grant dates had been manipulated to enhance the value of stock options given to employees, executives and consultants. The company will take a $215.6 million noncash charge for option expenses from 2000 to 2007.

Shares of Sycamore rose 9 cents, or 2.4%, to $3.86 in premarket trading Wednesday.

The company says its auditors found evidence that recorded grant dates were "deliberately altered" to obtain more favorable exercise prices for the grantees. About 97% of the option backdating occurred prior to July 2004, Sycamore said in a press release.

The review concluded that two former finance executives were ultimately responsible for the changes, and that no current management engaged in any wrongdoing.

Sycamore plans to file its delayed fiscal 2006 annual report "as soon as practicable." The report will include restated financials for the prior four years.

"We are pleased to have completed this investigation and look forward to finalizing our restatement as soon as possible," CEO Dan Smith said in a press release. "I believe that we have taken the necessary steps to ensure that the appropriate procedures are in place in our equity award process."

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SCMR $0.40 2.56%
AAPL $132.73 1.90%
FB $82.25 0.88%
GOOG $555.42 -1.70%
TSLA $234.37 7.30%


DOW 18,050.68 -29.46 -0.16%
S&P 500 2,114.36 -3.33 -0.16%
NASDAQ 5,074.0630 -18.0220 -0.35%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs