Peet's May Restate

The company cites its past accounting for stock options.
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Peet's Coffee & Tea

(PEET)

expects to have to restate some of its past financials to correct its accounting for stock options.

The company said that based on a preliminary review, there doesn't appear to have been any intentional misconduct when it came to option grants.

Although the probe is ongoing, the board's audit committee has concluded Peet's will most likely need to restate its historical results to record additional noncash stock-based compensation expenses as a result of errors in the measurement dates for some option awards.

Peet's also said that for the third quarter ended Oct. 1, net revenue increased 18.7% to $50.9 million from $42.9 million for the same period a year ago. The coffee seller expects fourth-quarter revenue to rise 20% to 21%, resulting in full-year revenue growth in the same range.

Preliminary earnings for the third quarter were $1.4 million, or 10 cents a share. If not for the option review, the company would expect fourth-quarter earnings from continuing operations of around 25 cents a share.

Looking to fiscal 2007, Peet's is targeting revenue growth of 20% to 23% and earnings, excluding any effects of the stock-option review, of between 70 cents and 73 cents.