This excerpt taken from the MRVL 8-K filed Oct 3, 2006.
Company Expects to Restate Financial Statements for Prior Fiscal Years
Santa Clara, California (October 2, 2006) Marvell Technology Group Ltd. (Nasdaq: MRVL) today announced an update in its internal review of stock option grant practices and related accounting matters.
As previously announced, a special committee of the Board of Directors has been conducting an internal review relating to the Companys historical stock option practices and related accounting matters. Although the committee is continuing its review of these matters, the committee has reached a preliminary conclusion that the actual measurement dates for financial accounting purposes of certain stock option grants awarded in the past likely differ from the recorded grant dates for such awards.
Based on the report of the special committee, the Board of Directors has concluded that the Company will need to restate historical financial statements to record additional non-cash charges for stock-based compensation expense related to certain past option grants. Marvell has not yet been able to determine the amount of these charges, the resulting tax and accounting impact of these actions, or which specific reporting periods require restatement. Accordingly, the financial statements and all earnings press releases and similar communications issued by the Company relating to periods beginning on or after its initial public offering in June 2000 should no longer be relied upon. Marvell intends to file its restated financial statements as soon as practicable after the completion of the special committees review.