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Altera Completes Options Probe

The chipmaker's financial chief retires.


(ALTR) - Get Altair Engineering Inc. Class A Report

said Monday that it will record $47.6 million in charges as part of a stock-options-related restatement of past financial results. The company also said that its chief financial officer has retired.

The San Jose, Calif., chipmaker has completed its review into stock options expense and said it found errors dating back to 1996.

The company expects to adjust results downward by $17.8 million to reflect stock option grant measurement errors from December 1996 to February 2001.

In addition, Altera will record $24.3 million in charges related to option grant agreement modifications from 1996 to 2002 in connection with the termination of certain employees' jobs, as well as other adjustments of $5.5 million related to accounting for the company's "service reward" program.

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Including taxes, the restatements will cut net income by $35.2 million.

Altera, which has delayed filing its second-quarter financial report because of the options probe, said it expects to file its results with the

Securities and Exchange Commission

by the Nasdaq's listing deadline of Oct. 26.

Separately, Altera said that Nathan Sarkisian retired effective Monday. Altera had said earlier this year that Sarkisian planned to leave the company by the end of 2006.

James Callas, currently vice president of finance and corporate controller, will become acting financial chief. Altera said a search for Sarkisian's permanent replacement is ongoing.