NASDAQ warns Apple over earnings delay

http://news.yahoo.com/s/afp/20060812/ts_afp/usitcompanyearnings_060812003455

Fri Aug 11, 9:12 PM ET

SAN FRANCISCO (AFP) - Apple Computer said it was notified that its 
NASDAQ trading status was in jeopardy because it missed the recent 
earnings filing deadline.

Apple had expected the notice after deciding to delay filing its second 
quarter fiscal results with the
Securities and Exchange Commission until completing an internal probe 
into stock option pricing, according to company spokeswoman Katie Cotton.

The Cupertino, California, maker of
Macintosh computers and iPod MP3 players got official word in a letter 
and requested a hearing to explain the situation to NASDAQ officials, 
Cotton said.

"This is a matter of procedure when you delay a filing," Cotton told 
AFP. "We are going to file the Form 10-Q following completion of our 
internal investigation."

"We are trying to resolve these issues as quickly as possible."

The letter from the commission arrived at Apple during a growing US 
scandal about the apparently widespread practice of US firms secretly 
backdating stock options to reward or retain top talent, especially in 
Silicon Valley.

The US
Department of Justice launched a task force to investigate the illegal 
practice and the number of companies being eyed for improprieties had 
reportedly topped 100.

Apple revealed in early June that it was looking into irregularities in 
the awarding of stock options to employees as far back as 1997 and that 
it would probably have to revise some of its financial results.


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