Semtech to Pay $62 Million for Options

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Semtech Corp. said Thursday that it would have to pay about $62 million to correct errors it made on stock options issued to executives from 1996 through 2006.


The announcement was part of a restatement of Semtech’s earnings for the fiscal years 2002 through 2006, which was required by Nasdaq to keep the firm listed.

Semtech’s statement added that the charges would have no impact on results this year or in the future, and said that it would file its fourth quarter earnings report within the next 15 days. It has delayed its past three quarters’ earnings due to the options probe.


However, the Camarillo-based semiconductor manufacturer did say that it expects to incur “substantial” expenses for legal and other professional services connected with the U.S. Securities and Exchange Commission stock option inquiry, a grand jury subpoena and derivative litigation.


Shares in Smetech closed down 33 cents, or 2.4 percent, to $13.49 Thursday.

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