Apple profits soar amidst stock option controversy

Former CFO points finger at Jobs.
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Apple achieved a massive 88 per cent rise in second quarter profits, rising to $770m (£384m) from $410m for the same period last year. Much of the success is thanks to the sale of 10.5 million iPods in the first three months of 2007.

The successful results come amidst ongoing controversy about share options. The firm is facing a criminal inquiry into the way it backdated share options in order to pitch them at favourable points when the company's stock was at its lowest.

Boss Steve Jobs has been personally targeted by former chief financial officer Fred Anderson, who claims he warned Jobs that the practice would require a special accounting charge. He also claims Mr Jobs falsely told him Apple's directors had approved details of the options scheme.

Anderson is one of the two former Apple executives charged by the Securities and Exchange Commission this week for manipulating share options, reported the Guardian.

However the board of Apple rallied to its founder's defence by making a public declaration of support, while independent directors such as former US vice-president Al Gore and Google's chairman, Eric Schmidt, said they had "complete confidence" in Mr Jobs' integrity and leadership of the company.

While the investigation has seemed to exonerate Jobs, Anderson’s parting shot could prove troublesome for jobs if further investigations corroborate the accusations.



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