Today Apple offered a further update on the stock option irregularity investigation. As a result of the investigation Apple will delay the filing of its Form 10-Q for the quarter ended July 1, 2006.
Although the investigation is ongoing, the Company has discovered additional evidence of irregularities. In light of this, management has concluded, and the audit committee of the board of directors agrees, that the Company will likely need to restate its historical financial statements to record non-cash charges for compensation expense relating to past stock option grants. The Company has not determined the amount of such charges, the resulting tax and accounting impact, or which periods may require restatement. Accordingly, the Company today filed a Form 8-K stating that the financial statements and all earnings and press releases and similar communications issued by the Company relating to periods commencing on September 29, 2002 should therefore not be relied upon.
Once the issues have been resolved Apple will file it's Form 10-Q and any other required statements.