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Quest Up on Filing of Delayed 2006 Results

Shares of Aliso Viejo-based Quest Software Inc., a maker of business software, closed higher Monday after the company filed results after a long-running probe into misdated stock options.

Shares rose almost 5% on a recent market value of about $2 billion.

In May 2006, Quest formed an internal board committee to review stock options grants between June 1998 and December 2005.

For the period, Quest took charges of about $137 million for restating the cost of option grants.

On Friday, Quest filed results for 2006. The first quarter of the year was subject to restatement because of options. The rest of the year’s results were delayed because of the options probe.

The company still needs to file complete results for the first three quarters of 2007, which also were delayed by the probe.

In September, Quest said it expected $143 million in charges to past earnings to properly account for options.

Quest, which makes software that works with widely used business programs by Microsoft Corp., Oracle Corp. and others, gave Wall Street only partial quarterly results for much of the past year or so while it sorted through its internal audit of options.

The year-long hiatus in reporting raised concern among investors and landed Quest many threats to be delisted from the Nasdaq exchange.

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