Backdating Hits CAD

Even since the Stock Option Backdating scandal hit the news a coupla' months back, I had been wondering if any CAD vendors were involved. (This is where a company gives an executive stock options, but then backdates the agreement to a date when the stocks are worth less $$$, thus making the potential payoff more lucrative. The practice is illegal.) It appears that Moldflow is the first to announce the problem:

Moldflow Corp. on Thursday said an internal review by a special committee of its auditors has identified one instance of backdating of stock option grants.

There was about US$500,000 worth of stock options dated incorrectly between 2003 and 2005. Moldflow says the backdating is the "result of imperfect documentation of its actions authorizing such awards and not due to any intentional backdating."

In other news, MFLO FY06 revenues were $65.6 million, up 2% over last year. Net income was $1.0 million.