Consumer Electronics Daily News

Apple: Internal Probe Finds No Misconduct by Current Execs

One day after news broke that the Securities and Exchange Commission was considering a case against Apple Computer for falsifying documents related to a 2001 stock options grant to CEO Steve Jobs, the Cupertino, Calif.-based company says that its own internal investigation found no misconduct by current executives and has "it has complete confidence in Steve Jobs and the senior management team."

Apple has submitted the findings of the investigation to the SEC, along with word that the mishandling of the options grant will cost an additional $84 million, including $4 million and $7 million in fiscal years 2006 and 2005, respectively.

“The special committee, its independent counsel and forensic accountants have performed an exhaustive investigation of Apple’s stock option granting practices,” said former Vice President Al Gore, Chair of the special committee, and Jerome York, chair of Apple’s Audit and Finance Committee. “The board of directors is confident that the company has corrected the problems that led to the restatement."

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New Members Join TDV Alliance

TDVision Systems, Inc., welcomes new members Integrated Microdisplays Limited, Himax Display Inc., and 3D-ETC to the TDV Alliance, a collaboration of companies working to create an infrastructure that will be the catalyst for TDVisions’s multi-purpose 3D technology.

Integrated Microdisplays Limited develops and markets Technology House of Liquid-Crystal-on-Silicon Microdisplay Systems for optics, electronics, VLSI design and LCD physics. Liquid-Crystal-on-Silicon integrated design and manufacturing company, Himax Display has developed LCOS panels for RPTV, head mounted displays and mini-projector. Michigan-based 3D-ETC is a multimedia company that creates training videos for various industries for health and safety related programs. With the adoption of TDVision’s portable technology, 3D-ETC will be able to deploy several training courses in high definition, providing a truly immersive 3D environment.

For more information about the TDV Alliance, click here.

Nine Days and Counting...

International CES 2007 is just around the corner!

Be sure to bookmark Consumer Electronics Daily News for the most comprehensive live coverage from the show floor. We'll have first-looks, breaking CE news, new product announcements and exclusive interviews from all the biggest and the best at the world's preeminent CE show.

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Commerce Secretary Joins CES lineup

U.S. Secretary of Commerce Carlos M. Gutierrez has joined the lineup of keynote speakers at International CES 2007, CEA announced today. He will deliver keynote comments the International SuperSession at the show, 1:30-2:30 p.m. Tuesday, January 9. Gutierrez is the first U.S. cabinet member to serve as a featured speaker in International CES history.

"Secretary Gutierrez has been instrumental in expanding international markets for U.S. companies and enabling consumers around the world to purchase the consumer technology products they desire," says CEA President and CEO Gary Shapiro. "We are honored to have Secretary Gutierrez speak at this year's International CES and share his views on international competitiveness and technology policy issues crucial to the continued growth and dynamism of the consumer electronics industry."

Following Secretary Gutierrez's address, the International SuperSession will feature a panel discussion with top government officials from Brazil, Japan and the United States focused on consumers' access to broadband networks, the availability of wireless spectrum and the transition to digital broadcasting.

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AMD Claims Legal Victory in Ongoing Antitrust Suit Against Intel

AMD says it has scored a significant legal victory in its ongoing antitrust suit against Intel Corporation. In an order effective yesterday, the Federal District Court in Delaware overruled Intel's objections and ordered it, "to produce documents and other evidence bearing upon Intel's exclusionary conduct outside of U.S. borders."

AMD said in a statement that the production of this foreign discovery will contain evidence of "anticompetitive business practices" in clear violation of the Sherman Antitrust Act, as well as "generally accepted anti-monopoly laws worldwide."

"Intel's acquiescence to the Special Master's findings is a big win for AMD," says Thomas M. McCoy, AMD Executive Vice President, Legal Affairs and Chief Administrative Officer. "This case remains firmly focused on the worldwide misbehavior of a global monopolist. This ruling also removes any basis for Intel or its foreign customers to withhold evidence of Intel's exclusion, regardless of where it occurred.  We will proceed vigorously to prove that Intel abuses its global monopoly power by limiting or excluding competition, which ultimately hurts consumers worldwide."

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Philips Deals APM Business to Lite-On

Royal Philips Electronics has announced plans to sell the manufacturing operations of the Philips Automotive Playback Modules (APM) business to Lite-On IT Corporation of Taiwan. The financial details of the sale were not disclosed.

The remaining APM operations will be transferred to a joint-venture between the two companies, which will operate under the name Philips & Lite-On Digital Solutions, or PLDS.

APM manufactures CD and DVD playback modules to suppliers of automotive entertainment systems. The manufacturing operations that will be sold to Lite-On IT are mainly located in Györ, Hungary. The activities that will be transferred to PLDS include research and development, marketing and sales and product management activities, which are primarily located in Wetzlar, Germany.

In PLDS, Lite-On replaces BenQ Corporation of Taiwan as partner in the joint venture now operating under the name Philips & BenQ Digital Storage, or PBDS.

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Jobs' Options Paperwork Falsified By Apple

SEC Investigating 2001 Stock Options Grant to Apple Computer CEO

Confidential sources have told the Financial Times that Apple will reveal that it falsified records of a full board meeting in 2001 when granting 7.5 million stock options to CEO Steve Jobs, in a regulatory filing later this week.

The falsified documents are said to be part of evidence obtained by the Securities and Exchange Commission in its investigation of the company, as it decides whether to pursue a case against Apple or any individuals involved in the inappropriate stock options grant. Many news analysts and insiders say that Jobs' himself is the likely target of the investigation as the company said publicly in October that while he had been "aware" of the backdating in "in a few instances" he did not "receive or otherwise benefit from these grants and was unaware of the accounting implications."

While Apple is one of more than 160 companies that has fessed up to stock option backdating, the scandal has become increasingly difficult for the Cupertino, Calif.-based company to contain in the wake of widely successful product launches and increased market share for consumer electronics (iPod) and Mac desktop and laptop computers.

In a 2002 filing, Apple said the options currently under review were granted in October 2001 at an exercise price of $18.30 a share. Jobs later gave up those options prior to exercising them, implying that no gain was made from them.

Under Apple’s rules, the chief executive’s remuneration must be set by a compensation committee of independent directors and later authorized by the full board.

An Apple spokesman refused to comment on the matter on yesterday, the Financial Times reports, but said the company had handed the findings of its internal inquiry to the SEC.

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10 Days and Counting...

International CES 2007 is just around the corner!

Be sure to bookmark Consumer Electronics Daily News for the most comprehensive live coverage from the show floor. We'll have first-looks, breaking CE news, new product announcements and exclusive interviews from all the biggest and the best at the world's preeminent CE show.

If you're exhibiting and there's something you'd like featured on the site, send us an email.