The Company accounts for all plans under APB Opinion No. 25, under which
no compensation cost has been recognized as all options granted during 1997,
1998 and 1999 have been granted at the fair market value of the Company's common
stock. Had compensation cost or these plans and the Company's 1998 ESPP been
determined in accordance with SFAS No. 123, the Company's net income and
EPS would have been reduced as follows:
Year Ended December 31,
-------------------------------------
1997 1998 1999
---- ---- ----
(in thousands except
per share data)
Net income: As reported ............ $ 14,478 $ 17,739 $ 13,862
Pro forma .............. 10,361 9,810 4,305
Basic EPS: As reported ............ $ 0.31 $ 0.37 $ 0.26
Pro forma 0.22 0.20 0.08
Diluted EPS: As reported ............ $ 0.28 $ 0.36 $ 0.26
Pro forma .............. 0.20 0.20 0.08
Under SFAS No. 123, the fair value of each option is estimated on the date
of grant using the Black Scholes option-pricing model with the following
weighted average assumptions used for grants in 1997, 1998 and 1999: (1)
expected life of option of seven years; (2) dividend yield of 0%; (3) expected
volatility of 64%, 56% and 58%; and (4) risk-free interest rate of 6.43%, 5.46%
and 5.66%, respectively. |
