Sycamore expects $215.6m in added expenses

Sycamore Networks Inc., a Chelmsford maker of optical switches, said it expects to record $215.6 million in additional noncash expenses for fiscal years 2000 through 2007, following an investigation into its stock-option granting practices.

The company said most of the additional expenses, about 97 percent, will be recorded for periods through the fiscal year ended July 31, 2004. The adjustments will have no effect on previously reported revenue or cash balances.

Sycamore said it reviewed more than 1.8 million pages of documents and examined about 5,100 stock option and restricted stock grants.

Its audit committee concluded the former chief financial officer, former director of financial operations, and others were responsible for deliberately altering the recorded grant dates for some options.

Sycamore said the workers left the company for reasons unrelated to the investigation.

It said the committee concluded no current managers or directors engaged in any wrongdoing.

Sycamore hopes to file its 10-K annual financial report for the fiscal year ended July 31, 2006, as soon as possible, which will include restated statements for the fiscal years ended July 31, 2005, and July 31, 2004.

The company’s stock has been subject to delisting by the Nasdaq Stock Market due to its delayed financial reports. Sycamore submitted additional information last week to Nasdaq to support its request for continued listing.
(AP)