Radio One straightens out its books


Urban specialist Radio One, which also operates CATV's TV One, has conducted an extensive research effort culminating in a restatement of its financial reporting for year-end 2002 and for each year through 2005. The change concerned net revenue, and was tied to stock-based compensation packages. It is believed this will solidify their standing on with Nasdaq.

In a 10K filing with the SEC, Radio One said that "…stock-based compensation charges, including the tax effect and other adjustments, decreased net income by approximately 9M for the years ended December 31, 1999 through December 31, 2005. For the year ended December 31, 2006, the stock-based compensation charges, including the tax effect and other adjustments related to the restatement increased the net loss by 246K." The company used law firm Covington & Burling to investigate its stock option practices and a number of tech companies to retrieve electronic data from computer and backup storage systems.