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Forrester Completes Review of Irregularities, Begins Filing Catch-up
Forrester Research has completed its stock-based compensation review and filed its Annual Report on Form 10-K for the fiscal year ended December 31, 2006 with the Securities and Exchange Commission.
The firm's current problems first came to light just before Christmas last year, when it announced that its Chief Financial Officer and Treasurer Warren Hadley had resigned, following initial findings from an internal investigation into share option irregularities (www.mrweb.com/drno/news6269.htm ). In February the firm said its own internal probe had found irregularities in its stock options grants between 1997 and 2003 (www.mrweb.com/drno/news6455.htm ) and a month later it confirmed it would be rewriting some of its old accounts accordingly (www.mrweb.com/drno/news6522.htm ). The SEC began a formal investigation into the stock option granting practices in June (www.mrweb.com/drno/news6942.htm ).
Today's announcement confirmed a cumulative adjustment for non-cash stock-based compensation expense of $47.6m pre-tax, with $46.6m attributable to periods prior to 2004. The firm is also restating its historical financial statements to recognize a deferred tax liability relating to a write-down of goodwill in 2002, and its interim quarterly financial information for 2006 in light of its 'failure to appropriately update management's estimate of the applicable pre-vesting forfeiture rates.'
The technology consulting group expects to file its Form 10-Qs for the first, second, and third quarters of 2007 by the 20th of this month. More details are contained in the 2006 Form 10-K filed today. The company is online at www.forrester.com.
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