Blue Coat (BCSI) said it would restate earnings going back seven years to fix accounting errors linked to its stock option grants.
The Sunnyvale, Calif., security software outfit said an ongoing review of its books shows that it will need to restate results from 2000 to 2006. The company came public in November 1999.
"The actual measurement dates for financial accounting purposes of certain stock options granted primarily during fiscal years 2000-2004 differ from the recorded grant dates of such awards," Blue Coat said. "Consequently, new measurement dates for financial accounting purposes will apply to the affected awards, which will result in additional and material non-cash stock-based compensation expense."
The company says it doesn't know how much the restatements will amount to.