Telstra has revealed the addition of almost one million new mobile services in the six months to December 2011, but Sensis revenues plummeted 24 percent in 12 months.
While the company did not admit or deny any wrongdoing, it did consent to a 'cease and desist' order relating to the Securities Exchange Act and SEC rules.
The matter involved a decision to expense employee stock options, resulting in lowered estimates of the company's earnings per share.
Linda Chatman Thomsen, Director of the SEC's Division of Enforcement, said, "Information regarding a company's earnings is one of the most important factors that many investors consider in making an investment decision, and it is essential that the information companies provide be clear and accurate."
SEC Associate Director of Enforcement Scott Friestad added "IBM misled investors by failing to disclose information that would have allowed them to accurately determine the impact that the company's decision to expense stock options would have on its financial results. The facts here are particularly troubling because the disclosure decision was driven, in part, by management's perception of how the news would be interpreted by analysts."
No monetary penalty of fine was imposed, according to IBM officials.
David Bass
| For the fourth year in a row, IDC has placed content security provider Websense (NASDAQ: WBSN) at the top of the IDC Worldwide Web Security 2011 –…
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