REDWOOD CITY, Calif.-Shares of Openwave Systems Inc. surged after the company said it will record additional stock-option expenses of roughly $182 million following an internal review of the fiscal years 2000 to 2005.
The mobile software developer said that while it found discrepancies in its accounting for stock-option grants, it uncovered no evidence of fraud or manipulation. But Openwave conceded it found “certain circumstances in which the grant date used preceded the appropriate measurement date.”
Openwave is one of at least 185 companies under the microscope for back-dating stock option grants, potentially allowing executives to buy shares at the lowest possible price within a specific time frame. Analysts say such practices were relatively common until about five years ago, but grants that remain improperly accounted for can require companies to restate earnings.
Other wireless players that have disclosed either federal or internal investigations include Boston Communications Group Inc., Comverse Technology Inc. and American Tower Corp.
Investors seemed relieved with Openwave’s announcement, which followed Friday’s closing bell. Shares shot up 68 cents, or more than 8 percent, to $8.97.
