Dec. 6, 2006

Openwave's stock was stronger yesterday after the company said it will record additional stock-option expenses of about $182 million, following an internal review of the fiscal years 2000 to 2005.

Openwave Systems Inc. said that while it found irregularities in its accounting for stock-option grants, it didn't uncover any evidence of fraud or manipulation.

However, Openwave did say 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 acquire lower-cost shares within a specific time frame.

Wall Street analysts and the SEC say such practices were relatively common until about 2001, 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 increased 68 cents to $8.97.

Source: RCR News