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Semtech Comes Under Stock Fire
Staff Reporter -- Electronic News, 6/15/2006
Semiconductor supplier Semtech Corp. is mired with trouble related to its allegedly questionable stock option granting practices.
The company announced today it has delayed the filing of its Form 10-Q for the fiscal quarter ended April 30 past the extended June 14 due date.
In a statement, the company said it has been involved in an internal review of its stock option practices in light of a recent informal SEC inquiry. Semtech asserted that it will file its Form 10-Q "as soon as practicable" after the company wraps up its internal review.
Click here for more news on the unfolding stock option investigation.
Due to the company's delay in filing the Form 10Q, Semtech expects notification that it is not in compliance with Nasdaq's filing requirements, the company said, and its common stock may be delisted from the market. Semtech said it is likely to request a hearing before a Nasdaq Listing Qualifications Panel.
Separately, two Semtech stockholders have filed derivative lawsuits related to stock option practices against the company and certain present and former directors and executive officers in California Superior Court, County of Ventura.
Additionally, Semtech received a grand jury subpoena dated June 8 from the United States District Court, Southern District of New York, regarding production of documents related to Semtech's stock option practices.
Semtech is just one of a growing list of semiconductor companies coming under fire for stock option granting practices that includes Maxim, Broadcom and KLA-Tencor.
