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
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.