Mercury Interactive to Restate

The company delays its 10-Q for stock option grant probe.
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Mercury Interactive

(MERQ)

will miss the deadline for filing its second-quarter financial report and will likely need to "materially" restate past earnings, the software vendor said before the opening bell on Monday.

The restatement stems from the company's ongoing internal accounting investigation, which found that some stock option grants were incorrectly dated. As a result, Mercury will likely have to take additional charges for stock-based compensation.

The amount of the additional charges has not yet been determined, but the company did say that the changes are "highly likely" to be material.

Mercury does not believe any restatement will have an impact on its historical revenue, cash position or non-stock-option-related operating expenses.

Mercury, which was scheduled to file its 10-Q form on Tuesday, makes software used to test and optimize corporate data networks.

In recent trading, shares of Mercury were off 33 cents to $37.94.