SAN JOSE, Calif., Aug. 18 /PRNewswire-FirstCall/ -- VNUS(R) Medical Technologies, Inc. (Nasdaq: VNUS) corrects its second quarter results and revises its full year 2008 guidance. The Company has recorded adjustments to cost of revenues, operating expenses and certain balance sheet accounts to record additional expenses related to stock-based compensation that were not appropriately recorded in prior periods since the adoption of Statement of Financial Accounting Standard ("SFAS") No. 123R on January 1, 2006. The stock-based compensation adjustments resulted from a correction of a mis-application of forfeiture rates to vested grants by a commercial stock plan administration software application package used by the Company.
For the three and six month period ended June 30, 2008, the Company included adjustments to stock-based compensation relating to the period January 1, 2006 through April 1, 2008 that resulted in the Company reporting $284,000 in additional pre-tax expenses. These adjustments reduced earnings per share by $0.02 for the three and six months ended June 30, 2008. These adjustments both individually and in the aggregate were not material to any of the 2006 and 2007 interim or full year consolidated financial statements nor are they material to expected full year 2008 results.
For the three month period ended June 30, 2008, the Company is
adjusting stock-based compensation compared to information disclosed in its
press release dated July 29, 2008, resulting in an increase to pre-tax
expenses of $183,000. This adjustment reduced reported earnings per share
by $0.01 for the three months ended June 30, 2008. Cumulatively, the out of
period adjustment and the effect of the correction to reported information
|SOURCE VNUS Medical Technologies, Inc.|
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