Sycamore delays full financial filing, citing stock-option probe

Sycamore Networks Inc. today reported partial financial results for the fourth quarter and fiscal year ended July 31, saying it needed more time to investigate new information related to stock options.

The Chelmsford optical-networking company had already restated its past financial results last year because of options-accounting problems and said it had put tighter controls in place. But this year the company has been swept up in broad probes by the Justice Department and the Securities and Exchange Commission over whether technology companies manipulated stock options they granted to benefit employees at the expense of shareholders.

In a press release today Sycamore said that "pending further investigation of recently discovered information relating to the granting of stock options, it is unable at this time to provide complete financial results'' and that it has reported the information to the SEC and Justice Department. It does not yet know if further financial charges will be taken, though it does not currently expect it will need to adjust historic revenue figures.

The company continues to cooperate with regulators, chief executive Daniel E. Smith said in a statement. The company will not file its annual form 10-K until after the investigation has been completed, the company said.

For the fourth quarter, Sycamore said revenue fell to $16.3 million from $18.5 million for the same period a year earlier. Revenue for the fiscal year was $87.4 million, compared with $65.4 million for fiscal 2005.

In noontime trading on the Nasdaq Stock Market, Sycamore stock was down 17 cents, or 4.2 percent, to $3.85.
(By Ross Kerber, Globe staff)