Apple's board of directors issued a statement of support for C.E.O. Steve Jobs after the company's former chief financial officer claimed he warned Jobs on the implications for backdating options. Meanwhile, Apple's impressive quarterly numbers indicate business is just fine.

"Steve Jobs cooperated fully with Apple's independent investigation and with the government's investigation of stock option grants at Apple," the board's statement reads. "We have complete confidence in the conclusions of Apple's independent investigation, and in Steve's integrity and his ability to lead Apple."

Fred Anderson, the former C.F.O. of Apple, said he warned Jobs that any changes in stock option grant dates would need to be recorded as accounting charges. In a statement, Anderson's lawyer says that Jobs informed Anderson that the board had agreed to a grant date, when it never actually did. Anderson settled charges with the Securities and Exchange Commission, while another former Apple executive, Nancy Heinen, plans to fight charges the agency brought against her.

While the escalating backdating scandal may be a distraction, Apple's latest quarterly results show that the company still has its eyes on the ball. Apple posted earnings up 88 percent over the same period last year, blowing away analysts' expectations. Apple earned $770 million, or 87 cents per share, on revenue of $5.3 billion during its second fiscal quarter. Analysts had expected $5.2 billion in sales and 64 cents per share in earnings.

The growth in earnings was driven by continued demand for the iPod music players, as well as surprising strength in sales of computers. Sales of Macs grew 36 percent over the same quarter last year, while iPods grew 24 percent.

Apple shares surged in after hours trading, up nearly 8 percent.