Realtor.com operator Move Inc. disclosed Monday that an error in a software program caused it to underestimate by $3.7 million the cost of providing stock-based compensation to its employees from the beginning of 2006 through June 30, 2009.
The programming glitch — which reportedly involved erroneous assumptions about whether employee stock options would vest or be forfeited — had no impact on cash from operations, the company said.
But Move will file restated financial statements to reflect increased stock-based compensation expenses of $1.25 million in 2006, $1.3 million in 2007, and $1.63 million in 2008. The error caused Move to overestimate the cost of stock-based compensation by about $390,000 in the first quarter of 2009 and by $100,000 in the second quarter.
A software update corrected the problem and Move expects to announce its third-quarter financial results on Thursday as planned.
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