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Xilinx Clears Stock Investigation
Staff Reporter -- Electronic News, 8/16/2006
The coast is clear for programmable logic company Xilinx Inc. An investigation into the company's historical stock options granting has wrapped up, finding no evidence of fraudulent practices, according to a filing the company made Tuesday with the Securities Exchange Commission (SEC).
Xilinx is one of a growing number of tech companies that have faced scrutiny in an industry-wide stock options probe. In June, the company encountered legal action from certain of its shareholders alleging the backdating of stock options. Also in June, the SEC launched an informal investigation into the company's stock option granting practices. The ongoing investigation caused the company to delay publishing its Q1 2007 earnings report in July.
Click here for more news on the unfolding stock option investigation.
"The investigation found no evidence of fraud in the company's practices in granting of stock options, nor any evidence of manipulation of the timing or exercise price of stock option grants," the filing stated. "The investigation further found no issues of management integrity in the issuance of stock options."
The independent investigation launched by Xilinx found that "in nearly all cases," the company granted stock options to employees on pre-set dates, according to the SEC filing.
Xilinx did take a one-time compensation charge of $2.2 million, an increase of $700,000 over the $1.5 million charge announced July 25, as a result of the investigation.
"This one-time charge did not have any material effect on the company's historical financial statements, and therefore there is no restatement necessary to the company's financial statements in prior years," the filing said.
