SAN JOSE, Calif. (AFX) - Electronics manufacturing service provider Sanmina-SCI Corp. said Wednesday its third-quarter revenue fell 4 percent and it was withholding additional financial information pending an investigation into its accounting for stock options.
Revenue for the quarter was $2.71 billion, down from $2.83 billion during the same period last year.
Analysts polled by Thomson Financial expected the company to report, on average, $2.72 billion in revenue.
The company said it will not release full financial results until it completes its review of its stock option practices going back to 1997, and as a result, it may miss its filing deadline with the Securities and Exchange Commission.
Sanmina-SCI is one of at least 60 companies under review by the SEC or the Department of Justice for possibly backdating stock option grants to coincide with lows for share prices in order to artificially boost the value of the options. There are at least another 10 companies conducting internal reviews of their stock option grant practices.
Earlier this month the company lowered third-quarter earnings estimates to 6 cents to 7 cents per share, down from a previous forecast for 8 cents to 10 cents per share. The earnings shortfall was blamed on a less profitable mix in sales.
Looking forward, the company projected fourth-quarter revenue of $2.7 billion to $2.8 billion. Analysts are looking for $2.83 billion in revenue for the fourth quarter.
Shares of Sanmina-SCI were trading at $3.48 in the extended session, down 21 cents, or 5.7 percent, from Wednesday's closing price of $3.69 on the Nasdaq.
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