Here is some interesting stuff I read (auditor’s opinion):
“We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated financial statements as of and for the year ended December 31, 2007 of the Company and our report dated February 29, 2008 expressed an unqualified opinion on those financial statements and included an explanatory paragraph regarding the Company’s adoption on January 1, 2007 of the Financial Accounting Standards Board’s Interpretation No. 48, Accounting for Uncertainty in Income Taxes, and the adoption on January 1, 2006 of Statement of Financial Accounting Standard No. 123(R), Share-Based Payments.”
A while ago I talked about the tax benifit of stock options, obviously the auditors at DELOITTE & TOUCHE LLP also think there is problem there.
In liew of this, I sold some shares today at after hour (I read this thing after 3PM CST).
The full annual report (10K) is here.
Correction: I made a mistake. As I recalled the meanings of auditors’ opinion taught in accounting class, unqualified actually means the auditor approves what the management said. See the definition from Wiki.