Deals, Deployments, and Short News
May 08, 2007 | Eclipsys will restate earnings following completion of a voluntary review of the company's stock option grant practices and related accounting issues. The review covered stock option grants made from the company's IPO in August 1998 until the present, with particular focus upon grants made before implementation of the Sarbanes-Oxley Act in July 2002. Eclipsys identified stock option grants made that had exercise prices lower than the fair market value, and concluded approximately $8.5 million in additional aggregate non-cash stock-based compensation expense should have been recognized from 1999-2006. This results in approximately $500,000 in related incremental payroll withholding taxes over the same period. 鈥淭he Company is working diligently to prepare its Annual Report on Form 10-K for the year ended December 31, 2006, which will affect the restatements as described above." Eclipsys incurred approximately $1.0 million in costs associated with the stock option review during the first quarter of 2007, and expects to incur approximately $1.5 million to $2.0 million in the second quarter of 2007.
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