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Technology Stocks : Stratex Networks, Inc. (STXN)

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To: The Ox who wrote (1749)11/2/2006 3:36:42 PM
From: Rob Preuss   of 1762
 
(3.8% of quarterly revenues given away in stock options.)

And that's a whopping 46% of (non-GAAP) net quarterly profit...

+5.6 M non-GAAP net profit
-2.6 M stock options
-1.5 M merger expenses
===============
+1.6 M GAAP net profit on 67.3 M in revenue

I don't like it either. But at least we know about it. Unless I'm confused, I think we can actually thank our government regulators for requiring this disclosure.

Is there some silver lining I don't see? (I mean something that lines shareholder pockets... not the obvious lining of executive pockets.) Perhaps this represents some "one-time" awards and not recurring awards? Perhaps the strike price on these options is fairly high?
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