I think this recent release confirms the # of shares that you documented earlier.
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Tuesday April 22 2:46 PM EDT
Osicom Corrects Published Report on Number of Newly-Issued Options and
Warrants in Fourth Quarter
SANTA MONICA, Calif.--(BUSINESS WIRE)--April 22, 1997--
Company Did Not Issue Options and Warrants Convertible
into 1.24 Million Shares as Reported
Osicom Technologies Inc today issued the following statement to clarify any
possible confusion surrounding the weighted number of average shares upon
which the Company's reported earnings per share for the fourth quarter ended
January 31, 1997, were calculated:
"We wish to correct a published report which erroneously
attributed to Osicom a statement that the Company had 'recently
issued options and warrants that can be converted into 1.24
million shares.'
"This is simply not the case. Osicom did not issue 1.24 million
options and warrants in the fourth quarter, nor did the Company
issue any statement to that effect. The dilutive effect of new
grants of options (vested and non-vested) in the fourth quarter
was only 142,000 assumed shares, which were issued to certain
key employees and one outside director.
"At the end of the third quarter Osicom reported the dilutive
effect of options and warrants of 742,000 shares. This number
represents, in accordance with accounting standards, the net number
of shares assumed outstanding using a computation methodology, called
the `treasury method' whereby dilutive (`in the money') options are
exercised, and the proceeds are assumed to repurchase shares at
either the quarterly average closing price or the end of period
price.
"Due to the resetting in the fourth quarter of certain key
employee stock options granted prior to the end of the third quarter
(none of whom are directors or executive officers), and the absence
of the mathematical benefit of weighted average, also in accordance
with accounting standards, the net number of shares outstanding for
primary EPS increased by 548,000.
"Because Osicom's common stock price rose to $11.25 at fiscal year
end from $9 per share at the end of the third quarter, the same
number of options outstanding at the end of the third quarter
increased the number of shares assumed outstanding for primary
earnings per share by 272,000.
"The weighted average shares outstanding at year end also included
56,000 shares (computed using the fiscal year end price) which will
be due in the coming fiscal year from a minor acquisition completed
recently.
"When all of the above assumed outstanding shares are combined,
the total is 1,704,000 for options and warrants and 56,000 for other
issuable shares. Added to the weighted average common stock
outstanding of 10,458,000 the total shares assumed outstanding for
primary weighted average earnings per share is 12,218,000, as
reported by the Company on April 16th."
Osicom Technologies is a Santa Monica, California-based company engaged in
design, manufacture and marketing of transmission, networking, remote
access, and connectivity products for use in local area networks, wide area
networks, and broadband global networks. The company is one of the leading
suppliers of networking products which provide a seamless infrastructure
linking geographically dispersed networks and offer integrated solutions for
remote access products, hubs and switches, routers, concentrators, high
performance network adapters, network print servers, frame relay encryption
devices, video switches and routers and a family of other products to build
broadcast systems over copper, fiber optic, or wireless transmission media.
Additional information about Osicom's products and services, financial data,
and other information can be found at the company's web site at
osicom.com .
Except for historical information contained herein, the matters discussed in
this news release are forward looking statements that involve risks and
uncertainties. The forward looking statements in this release are made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Actual results may differ materially due to a variety of
factors, including without limitation the company's ability to develop,
produce and market products that incorporate new technology on a timely
basis, that are priced competitively and achieve significant market
acceptance; higher expenses associated with the development and marketing of
new products; changes in product mix; risks of dependence on third party
component suppliers; inventory risks due to shifts in market demand; the
presence of competitors with broader product lines and greater financial
resources; intellectual property rights and litigation; needs for liquidity;
and other risks detailed from time to time in the company's reports filed
with the Securities and Exchange Commission.
CONTACT: Sitrick And Company
Jeff Lloyd/Tom Ekman
310/788-2850
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Jim |
