Nvidia takes $127 million charge for "certain option grants"
Nvidia said it has filed three amended SEC forms relating to the firm's fiscal year 2006 ended January 29, 2006, the first quarter of fiscal 2007 ended April 30, 2006, and for the second quarter of fiscal 2007 ended July 30, 2006. The filings address "instances of the use of incorrect measurement dates for certain option grants" found by an audit committee that reviewed the firm's stock option grant practices.
According to the filings, the company is hit with an aggregate $127 million "non-cash charge" that covers "stock-based compensation and associated payroll tax expense [and] net of related income tax effects."
Nvidia said that the restatements did not have material impacts for any of the quarters of its current 2007 fiscal year. On November 9, the company reported a 63% jump in net earnings, from $65.2 million to $106.5 million for its fiscal Q3 2007, ended October 29. Revenues were up 41% year-over-year, to $820.6 million.