Interwoven to Restate Results

The company said it found measurement dates for financial accounting purposes for some stock-option grants differ from the previously recorded grant dates of those awards. Backdating is when options are issued retroactively to coincide with low points in the stock price, which can increase the profit for the recipient. It is not necessarily illegal, but must be disclosed to investors and accounted for properly.

The company will take a $30 million to $35 million pretax charge for a stock-option expense related to historical option grants. About $2 million to $5 million in charges are expected to be charged to the financial statements for 2002 to 2005. The rest will be recorded as a charge to accumulated deficit as of Dec. 31, 2001.

Interwoven will restate financial statements for the years 2002 through 2005, and condensed balance sheets for each quarter of 2005 and the first three quarters of 2006.

Shares ended 26 cents, or 2 percent, lower to $12.73 and remain unchanged in after-hours trading.