Apple Releases Financial Results, Discusses Options Scandal

Today Apple released both its tardy 10Q (for 2Q 2006) and 10K (for fiscal year 2006) reports to the SEC. Much of the attention of the press release was placed on the continuing Stock Options back-dating investigation.

According to the release, Apple found a total of $84 million in charges related to the case, which dates back to 1997, including $4 million in 2006 and $7 million in 2005. However, to put the issue in perspective, Apple's profits for 2005 and 2006 were $1 billion-plus each year, so the corrections represent less than 1% of Apple's profitability in those years.

In addition, Apple's board expressed confidence in CEO Steve Jobs, who was recently in headlines regarding some of the backdated options he received but never profited from.

The special committee, its independent counsel and forensic accountants have performed an exhaustive investigation of Apples stock option granting practices, in a joint statement said Al Gore, chair of the special committee, and Jerome York, chair of Apples Audit and Finance Committee. The board of directors is confident that the Company has corrected the problems that led to the restatement, and it has complete confidence in Steve Jobs and the senior management team.

Apple's stock has been traded heavily over the past few days, with the stock dipping as much as 6% before recovering on December 27th (Wednesday). As of this writing, Apple's stock is up over 5%.

Popular Stories

BMW Logo iPhone 15 Pro

Warning: BMW Wireless Charging May Break iPhone 15's Apple Pay Chip

Sunday October 1, 2023 6:14 am PDT by
If you have an iPhone 15 and drive a BMW, it might be best to avoid charging the device with the vehicle's wireless charging pad for now. Over the past week, some BMW owners have complained that their iPhone 15's NFC chip no longer works after charging the device with their vehicle's wireless charging pad, according to comments shared on the MacRumors Forums and X, formerly known as Twitter. ...
Multi Display CarPlay 1

All-New Apple CarPlay Launching Later This Year With These 5 New Features

Friday September 29, 2023 11:29 am PDT by
At WWDC 2022 last year, Apple previewed the next generation of CarPlay, promising deeper integration with vehicle functions like A/C and FM radio, support for multiple displays across the dashboard, personalization options, and more. Apple said the first vehicles with support for the next-generation CarPlay experience would be announced in late 2023, but it has still not shared any additional...
Apple Watch Edition Gold 2015

Original Apple Watch is Now Obsolete, Including $17,000 Gold Model

Monday October 2, 2023 9:15 am PDT by
All first-generation Apple Watch models released in 2015 were added to Apple's obsolete products list on September 30, according to an internal memo obtained by MacRumors. As a result, these outdated "Series 0" watches are no longer eligible for repairs or other service at Apple Stores and Apple Authorized Service Provider locations. The list of obsolete models includes the first-generation...
iPhone 15 Pro lineup

Apple to Address iPhone 15 Pro Overheating Issue With iOS 17 Update

Saturday September 30, 2023 9:28 am PDT by
Apple plans to release an iOS 17 update to address a bug that may contribute to the reported iPhone 15 Pro and iPhone 15 Pro Max overheating issue, according to a statement the company shared today with MacRumors and Forbes reporter David Phelan. Apple also says some recent updates to third-party apps have overloaded the system and contributed to the overheating issue. The report notes that...
Apple Logo Spotlight

Mac Trade-In Changes May Indicate New Model to Launch This Month

Tuesday October 3, 2023 6:30 am PDT by
Apple may be proceeding with plans to release a new Mac model this month, according to potentially related information obtained by MacRumors. Details pertaining to imminent changes to Mac trade-ins provided to MacRumors by a verified source suggest that Apple will likely begin accepting new models for trade-in this month. Similar changes in June coincided with WWDC, when Apple began accepting...
iphone se 4 modified flag edges

iPhone SE 4 Details: Action Button, USB-C Port, Face ID, and More

Wednesday September 27, 2023 1:34 pm PDT by
Significant changes are expected to arrive with Apple's fourth-generation iPhone SE, in terms of both design and hardware, MacRumors has learned. The iPhone SE 4, known internally under the codename Ghost, is expected to receive a new design derived almost entirely from the base model iPhone 14. According to our sources, the iPhone SE 4 will use a modified version of the iPhone 14 chassis...