Options backdating hits McAfee

The security software sees errors in data from 2001-2006, likely to issue restatements.
NEW YORK (Reuters) -- Security software supplier McAfee Inc. said Wednesday that a review found discrepancies in the dating of some stock option grants and that it will likely see material financial restatements.
McAfee (Charts) shares fell in after-hours trading.
Several other technology companies, including BEA Systems Inc, Marvell Technology Group Ltd and Cablevision Systems Corp, also issued statements about stock option investigations Wednesday.
McAfee said a special committee found actual accounting measurement dates for some historical stock options differed from the measurement dates previously used for such awards.
As a result it said its financial statement for the fiscal first quarter of 2006, its annual reports for fiscal years 2005, 2004, 2003, and data for fiscal 2002 and 2001, should no longer be relied upon.
McAfee also said "it is more likely than not" that the adjustments related to prior periods will be material and that it would "restate its financial statements in at least one, and potentially several, prior periods."
It said it has not determined the amount of additional stock option expense as the special committee has not yet completed its review.
McAfee also said it expects that expenses arising from the committee's review, any potential restatement of financial statements and related activities, which will be recorded in the periods incurred, will be significant.
McAfee released preliminary second-quarter results in July, saying it was in the midst of a previously announced review of stock option grant practices and related accounting.
Separately, Cablevision said on Wednesday that U.S. financial regulators and a New York prosecutor were each conducting investigations into its stock option practices.
Another software company, BEA Systems, said that its board had begun an internal review of its stock option grants that could require it to restate prior results.
Chip maker Marvell said it does not expect to meet a Sept. 7 deadline for filing its quarterly report with regulators due to an internal review of its stock option grants.
Memory chip maker Rambus Inc. said it was challenging a possible delisting from Nasdaq caused by its failure to file its quarterly report on time as it reviews past stock option grants.