Report: Apple Falsified Jobs’ Stock Options Authorization

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Date: Thursday, December 28th, 2006, 13:09
Category: News

Apple Computer’s stock fell $1.64 per share, or two percent, following a report that indicated that Apple CEO Steve Jobs, who returned to the company in 1997, was awarded 7.5 million stock options in 2001 without proper authorization from the company’s board of directors. The revelation was made public via a recently released Financial Times article.
The article reports that records logging a full board meeting, which is required to approve stock options remunerations, were later falsifed. These records are now under review by the Securities and Exchange Commission as it decides which investigative avenues to pursue (individual or company-wide) and Apple is expected to discuss the situation along with details about an additional investigation as to stock option irregularities and backdating within the company at the annual meeting on Friday.
Additional questions and pressures have arisen given the fact that Jobs has sought legal counsel outside the company, despite having been above the fray of the investigation since it began this fall. To date, Jobs had claimed he had been “aware” of the backdating “in a few instances”, but claimed he had never benefited from these actions or been aware of the accounting implications.
In October of 2001, Jobs’ stock options were offered at an exercise price of $18.30 per share while the alleged board authorization occurred near the end of 2001. Such an action would indicate that the options weren’t properly authorized and had been backdated to maximize the value of Jobs’ stock options.
Jobs would later surrender the stock options before exercising them, thereby not showing any actual gain on the transaction. The Apple CEO would later be given a grant of restricted stock by the company in lieu of the options, this value perhaps having been calculated on the backdated stock options and targeted by the investigation.
Apple has reportedly refused to comment on the issue, but a spokesman has claimed the company has handed the findings of its own internal investiation to the SEC. The company has stated that its investigation found “no misconduct by any member of Apple’s current management team”, although two executives – Nancy Heinan, former senior vice president and Fred Anderson, former chief financial officer for the company, both resigned as of this year.
Anderson may be under investigation for a different set of actions, as he was not a part of the board of directors as of the October, 2001 decision that’s pertinent to Jobs’ reported role in the case.
If you have any ideas or comments, let us know.


Feds Examining Apple Stock-Option Files

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Date: Wednesday, December 27th, 2006, 12:14
Category: News

According to an article on Macworld News, federal investigators are “looking closely” at Apple stock-option documents that employees within the company may have falsified in order to boost their own profits. The story was initially published in the late Tuesday online edition of The Recorder on legal news web site
Further details are expected in Apple’s delayed annual report, due out this Friday and Apple CEO Steve Jobs, who has publicly apologized for his actions with regard to the stock options and sought legal counsel apart from Apple’s.
A three-month investigation conducted by investigators that concluded in October revealed that individuals within the company familiar with the case came forward as well as requested anonymity given the ongoing criminal and civil government investigations.
At the end of the internal investigation, Apple mentioned that it had “raised serious concerns” regarding the actions of two former executives tied into the fiscal inner workings of the company – Nancy Heinan, former senior vice president, who quietly parted ways with the company this May and former chief financial officer Fred Anderson, who resigned from the company in October as the investigation was wrapping up and commenting that it was in the company’s best interest for him to go.
Apple’s stock price tumbled to $78.19 per share as of Wednesday morning and the firm is among 200 companies that have disclosed internal investigations as well as federal probes by either the Securities and Exchange Commision or the Department of Justice for inquiries related to stock-option management, including backdating of options.
Stay tuned for further comment and details in Friday’s annual report.
If you have any comments or feedback on this, let us know.


MacBook Pro Users Report Continued Screen Flickering

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Date: Wednesday, December 27th, 2006, 10:29
Category: News

An article over at reports that several users have written in regarding screen flicker problems with their MacBook Pro Core 2 Duo laptops.
The flickering, according to reader Steven Bailey, is horizontally variable and has appeared twice to date when the screen is turned to full brightness. A restart reduced the problem, but is still visible if the brightness level is reduced.
The problem seems reminiscent of a logic board problem that haunted Apple’s iBook G4 laptops. The company diagnosed the problem and in many cases replaced the logic board under warranty.
If you’re seeing this problem with your Core 2 Duo-based MacBook Pro or have questions or comments, please let us know.


Users Reporting Erratic Trackpad Behavior Under Windows

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Date: Tuesday, December 26th, 2006, 12:01
Category: News

According to an article on MacFixIt, several users have reported erratic trackpad behavior on their Intel-based MacBook and MacBook Pro laptops when running Windows under both Apple’s Boot Cap and Parallels Desktop for Mac OS X.
While behavior will be normal for a while, readers have commented that after a given period of time, behavior will become erratic.
The article reports that running a trackpad reset, or running a hand across the entire trackpad in a wiping motion, can resolve the issue as a short term fix (the solution is covered in this Apple Knowledge Base article, which discusses resetting the trackpad on various PowerBook G4 laptops).
As of now there’s been no comment regarding this issue from Apple.
Please let us know if you’ve encountered this or similar problems and what fixes or workarounds have resolved the situation for you.


MacHeist Raises Over $190,000 for Charities

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Date: Friday, December 22nd, 2006, 08:34
Category: News

MacHeist, creators of the MacHeist Bundle (a bundled combination of software from 10 different developers) has announced that their MacHeist event is over and that the firm was able to raise over $190,000 for charity.
The effort, which sold the bundle (worth over $356 if the items were bought individually at full price) for $49, contributed 25% of money earned to United Way International, Direct Relief International, AIDS Research Alliance,, The Nature Conservancy, the World Wildlife Fund, The Hunger Project and Save the Children.
Shareware developers involved in the project included firms like Delicious Monster, unsanity, Realmac Software and Pangea.
In order to round out the total to an even number, MacHeist will be contributing an additional $10,000 to the effort, bringing the total to $200,000.


Apple Quietly Pulls iSight From Online Store

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Date: Thursday, December 21st, 2006, 08:53
Category: News

According to an article over on MacNN, Apple has quietly removed the iSight camera from its online Apple Store shelves, leaving only the iSight Accessory Kit and Griffin’s SightLight FireWire accessory, both initially modeled around the iSight camera.
With speculation fervent in the less than two weeks before Macworld Expo, some have wondered whether a new camera is in the works or whether additional Apple hardware, such as the company’s screens, will find themselves with iSight camera technology embedded into them.
Time to wait and see, but if you have any ideas or comments, let us know.


Intel to Release Core 2 Quad Processor in January

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Date: Wednesday, December 20th, 2006, 11:48
Category: News

According to an article on Macworld News, chip manufacturer Intel will release the third generation of its Core processor line, this one featuring four processor cores which function simultaneously to work through tasks.
The new processor will be released at the Consumer Electronics Show in Las Vegas the week of January 8th.
Like Intel’s current Core 2 Duo processor line, the Core 2 Quad processors will use multithreaded software which breaks a task into smaller pieces, then handles those segments simultaneously.
Multiple core processors are popular with users performing higher-end tasks such as digital media work, gaming and running servers, although Intel sees a rising market of mainstream users performing processor-intensive tasks such as music, multimedia and more hardware-intensive gaming.
Intel has yet to announce a release date, clock speed or timeline for hardware vendors such as Apple, Dell and others to integrate the new processors into their upcoming product lines.


Extreme: Yes, I Destroyed my MacBook

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Date: Wednesday, December 20th, 2006, 08:00
Category: News

Fans of yesterday’s “Anyone Knee’d a PowerBook?” will appreciate today’s Extreme MacBook installment. Those that really love their MacBooks may want to skip ahead to the next story as this one’s kinda gory.

Yes, I destroyed my MacBook
This was actually my third one. The others went back as DOA. This one almost worked, enough for me to keep it. It never really worked right though. Random lockups, wireless dropouts, wireless not working when returning from sleep. Weird stuff like my whole desktop just disappearing. Yes I tried different memory, and it always passed the Apple hardware test fine.
After six months of this crap, In a fit of rage I did this to it. The rage was probably caused by the crazy amounts of drugs I am on for Lupus at the moment.
It cut my hand pretty bad in the process, hence the blood. I can’t afford another one, so now I have to use my Windows PC :(
I was really disappointed in this computer as my previous Mac (Mac mini) was the best computer I have ever owned.

If you’ve got the stomach for it, there’s eight more pictures of MacBook murder.
Contributed by: carbuncle


Matsushita to Offer Overheating-Resistant New Batteries

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Date: Tuesday, December 19th, 2006, 08:10
Category: News

According to an article from the Associated Press mentioned on the Dallas-Fort Worth’s web site, Japanese electronics firm Matsushita (which Apple has long used for components such as optical drives), whill begin mass production of a new type of lithium-ion battery that should prove resistant to the overheating problems that prompted Sony to issue a massive recall of up to 9.6 million of its batteries this year.
The recall also included batteries for the MacBook and MacBook Pro laptop lines.
Sony has mentioned that the overheating problems were due to microscopic metal particles in the batteries which caused short-circuits and later breakdown and even swelling. Competitor Matsushita has stated that its lithium-ion batteries can avoid this problem altogether.
The firm finally commented that the new batteries would depend on the quantity ordered, but be somewhat higher than that of existing models.
If you have any ideas, suggestions or comments about this, let us know.


Extreme: Anyone Knee’d a PowerBook?

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Date: Tuesday, December 19th, 2006, 08:00
Category: News

A reader sent in the following story about an extremely damaged PowerBook – the result of apparent anger management issues:


One-two over the knee.
And a slam to the floor makes PB no more.
I am a very busy kinda guy, with little tolerance for imperfection, and every once in a while the pressure valve just pops!
In any case, I had a fairly recent backup and thanks to .Mac syncing, I’m back up and running with a new MBP.
And to tell the truth my new machine is much nicer than my 1.33 PB.

Another, even worse picture after the jump…
Contributed by: EtyHead