The company added that it may face "significant tax liability" for prior years because it misapplied IRS rules.
On May 21, 2007 the company became current on late SEC filings and recorded, as a result of a restatement, for the fiscal years 1994 through 2005, pretax noncash compensation expense of .9 million.
The company also said it will restate several years of past results to adjust accounting for two option grants in 20.
On May 25, 2007, the company said the SEC had informed the company it had completed its probe and didn't intend to recommend any enforcement action.
It plans to restate results from fiscal 1998 through the first quarter of 2006. 15, the company said the SEC was probing its stock-option practices. 6, the company said it found evidence of intentional manipulation of stock option pricing by one former executive and some evidence that two other former executives "may have been aware of, or participated in, this conduct." It is recording extra noncash stock-based compensation expense of 6 million, after tax, for the period January 1998 to June 30, 2006.
The report, from a Lehman Brothers analyst, called the companys historical options-granting practices "highly questionable." On July 10, the company disclosed that it had received a letter from the SEC about an informal investigation into the companys stock-option grants. 3, the company said it will likely have to restate past results as a result of problems with past grants.
Its financial chief resigned, citing personal reasons. 14, 2006 the company a review found the company misdated certain stock option grants and that it found that some former officers may have covered errors in the grant approval process.
(Headlines)The Dallas technology outsourcer acknowledged May 10, after a preliminary internal probe, that it had issued executive stock options that carried "effective dates" preceding the written approval of the grants.
ACS said it plans a charge of as much as million to rectify its accounting related to the grants. Edwards signed separation agreements with ACS that will allow them to remain with the company during a transition period ending June 30, 2007.