Updated from 5:20 p.m. EDTMcAfee ( MFE) said after the bell Thursday that it would likely restate its financial statements in at least one, and potentially several, prior periods because of problems with its stock-options grants. The review of its practices and the subsequent adjustment to its accounting-measurement dates for the options "will likely result in prior period non-cash stock compensation charges and related tax effects," which could affect the company's preliminary second-quarter results. The company said "it is more likely than not that the amount of such additional adjustments relating to prior periods will be material." Additionally, McAfee said that because of the options review, it will likely fail to file its 10-Q for the June quarter on time. Investors fled the shares after the report, sending the stock down 16.2%, or $3.91, to $20.18. For its preliminary second-quarter results, the security-software seller earned $31.4 million, or 19 cents a share, falling from $41.7 million, or 25 cents a share, in the year-ago quarter. Net income, excluding certain items, was $48.4 million, or 30 cents a share, dropping from $51.6 million, or 31 cents a share, in the same period last year. Sales totaled $277.4 million, rising from $245.4 million in the same quarter last year. Thomson First Call analysts were expecting income of 31 cents a share on sales of $272.7 million. Online consumer services added 1.6 million new subscribers in the quarter to 20.8 million. GAAP operating margins for the quarter were 10%; pro forma operating margins were 21%. Both figures include $4 million in charges related to a potential legal settlement. Last quarter, the company announced that its board had approved $250 million for share repurchases. CFO Eric Brown said the company has halted the practice until the options review is complete and the company files its 10-Q. For the coming quarter, McAfee expects to post revenue between $265 million and $285 million and pro forma EPS between 26 cents and 32 cents. For the full year, the company said revenue will range from $1.05 billion to $1.15 billion; EPS will be between $1.20 and $1.40. The consensus forecast calls for sales of $278.6 million for the third quarter and pro forma income of 33 cents a share. For the full year, the average analyst prediction is $1.12 billion on the top line and non-GAAP EPS of $1.37. McAfee closed the regular session up 8 cents to $24.02.