Summary
NVIDIA Corporation filed an 8-K on August 10, 2006, primarily to announce its second-quarter fiscal year 2007 results and to disclose a voluntary review of its stock option practices. The company reported record revenue for the second quarter ended July 30, 2006. However, this positive revenue news is overshadowed by the announcement that the Audit Committee is investigating past stock option grants for potential accounting errors regarding measurement dates. This review, conducted with outside legal counsel and voluntarily disclosed to the SEC, may result in additional non-cash stock-based compensation expense. The company also indicated that it anticipates a delay in filing its Form 10-Q for the second quarter due to this ongoing review.
Key Highlights
- 1NVIDIA reported record revenue for the second quarter of fiscal year 2007.
- 2The company is undertaking a voluntary review of its historical stock option grant practices.
- 3The review, led by the Audit Committee with external legal counsel, covers the period from the company's IPO in 1999 through the current fiscal year.
- 4Preliminary findings suggest incorrect measurement dates may have been used for stock option grants in prior periods.
- 5NVIDIA may incur additional non-cash stock-based compensation expense as a result of the review.
- 6The company anticipates a delay in filing its second-quarter Form 10-Q report.
- 7The stock option review does not impact the company's cash position or reported revenue for the current or past periods.