adjusted its option expenses, resulting in a bigger second-quarter loss than originally announced. But the company says an internal review found no intentional manipulation of backdated stock options.

The San Jose, Calif.-based telecom gearmaker filed a second-quarter report Monday showing higher stock compensation expenses translating to a net loss of $1.9 million, compared with $1.8 million first announced on July 25. The company says its loss for the first six months of the year widened to $4.5 million from $4.3 million, due to the expensing increases.

A special company-appointed committee has finished its review of stock option practices and reports that some grants were dated earlier than they were completed, according to a filing. The company says "administrative or processing delays" caused stock option grants to be completed after the grant date.

Redback is among dozens of companies that have been pulled into a widening securities fraud investigation. Regulators are probing option grants to executives that may have been manipulated so that the dates coincide with times when the stock was low. The so-called backdating helps enhance the value of the grant as the stock price rises.

The news comes a week after federal prosecutors charged three former

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fat cats with criminal securities fraud in connection with backdating there. And two former execs at



were indicted last month on similar charges.

Redback shares were up 81 cents, or 5%, to $17.19 in premarket trading Tuesday.