EFI Files Late Reports, To Take $152 Million Charge
Press release from the issuing company
October 22, 2007 - FOSTER CITY, Calif. - EFI, the world leader in customer-focused digital printing innovation, announced today that it has filed its Annual Report on Form 10-K for the year ended December 31, 2006 and its Quarterly Reports on Form 10-Q for the quarters ended September 30, 2006, March 31, 2007 and June 30, 2007 with the Securities and Exchange Commission. As previously announced, these reports were delayed due to the independent investigation by a special committee of EFI's board of directors into its historical option practices and the resulting restatement of its previously issued financial statements.
Based on information obtained during the independent investigation, on May 7, 2007 EFI announced its intention to restate its previously issued financial statements to reflect the additional stock-based compensation expense it would be required to record. In the Company's Annual Report on Form 10-K for the year ended December 31, 2006, the Company restated its consolidated balance sheet as of December 31, 2005 and the related consolidated statements of operations, stockholders' equity and cash flows for the years ended December 31, 2005 and 2004, and each of the quarters in 2006 and 2005 to reflect such additional stock-based non-cash compensation expense and related income tax effects for stock option awards granted from 1992 through 2006 and the financial statement impact for all subsequent periods. The Company has recorded a cumulative charge of $98.9 million net of income taxes ($152.1 million on a pre-tax basis) in its consolidated financial statements through December 31, 2005 to reflect additional stock-based compensation expense. The Company's findings indicate that stock options granted prior to January 31, 2001 and subject to re-measurement comprised more than 97% of the additional stock-based compensation.
With the filing of the Annual Report and Quarterly Reports referred to above, the Company believes it has returned to full compliance with the Securities and Exchange Commission reporting requirements and Nasdaq listing requirements.
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