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WFI stock plummets on financial woes

Investors fled San Diego-based Wireless Facilities Inc. in droves after the company announced an internal review of the company’s stock-options granting practices as well as several impairment charges. The company’s stock was down a whopping 20 percent, to $1.68 per share, following the news.
The infrastructure vendor announced its stock-options review could affect its financial reporting stretching back to 1998. The company also said it wouldn’t file its fiscal 2006 report with the Securities and Exchange Commission due to the situation.
WFI is one of a large and growing number of companies forced to review their financials due to improperly recorded stock-option grants.
In a separate matter, WFI also said it would record a number of charges including that of $18.3 million due to acquisitions the company made in 2003; $9.2 million due to stock compensation expenses; and $3.4 million due to “an excess facility accrual for consolidation of the company’s headquarters facility, the impairment of an asset and employee termination costs.”
WFI works in the design and deployment of wireless networks.

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