re: < ...the subordinated notes and their effect on the fully diluted share count. I asked Cymer and the reponse was that they are not considered common stock equivalents.>>
From what I understand, the notes won't affect their "basic" EPS but will factor in to their "diluted" EPS. No..wait, I see, since the notes are NOT common stock equivalents, they won't even be factored into the "diluted" EPS. That's nice.
From Aug/97 10Q
New Accounting Pronouncement. In February 1997, the
Financial Accounting Standards Board issued Statement of
Financial Accounting Standards ("SFAS") No. 128, "Earnings
Per Share," effective for financial statements issued after
December 15, 1997. SFAS No. 128 requires dual presentation
of "Basic" and "Diluted" EPS by entities with complex
capital structures, replacing "Primary" and "Fully Diluted"
EPS under Accounting Principles Board ("APB") Opinion No.
15. Basic EPS excludes dilution from common stock
equivalents and is computed by dividing income available to
common stockholders by the weighted-average number of common
shares outstanding for the period. Diluted EPS reflects the
potential dilution from common stock equivalents, similar to
fully diluted EPS, but uses only the average stock price
during the period as part of the computation. The Company
will be required to adopt the new method of reporting EPS
for the year ending December 31, 1997.
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