Greg -
In addition (from 10K) ...
Big hit to E.P.S. ........
If they reported differently .....
PLASMA-THERM, INC. AND SUBSIDIARY
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
THREE YEARS ENDED NOVEMBER 30, 1997
Accounting for Stock-Based Compensation
Management has made the determination not to adopt SFAS No. 123's accounting recognition provisions for employee stock options. Therefore, only proforma disclosures under SFAS No. 123 are required for 1996, 1997 and thereafter. Had compensation cost for stock options been determined based on the fair value of the options at the grant dates consistent with the method of Statement of Financial Accounting Standards 123, Accounting for Stock-Based Compensation (SFAS 123), the Company's net income and earnings per share would have been
reduced to the pro forma amounts indicated below.
1997 1996
---------- ----------
Net Income As reported $4,661,120 $2,993,586
Pro Forma (unaudited) 3,863,798 2,118,899
Primary & Fully
Dilutive EPS As Reported $ .41 $ .28
Pro Forma (unaudited) .34 .20
The fair value of each option grant is estimated on the date of grant using the Binomial options-pricing model with the following weighted-average assumptions used for grants in 1997 and 1996 respectively: No dividend yield for all years; expected volatility of 69.9 and 79.3 percent; risk-free interest rates of 6.1
and 6.0 percent; and expected lives of 2.4 and 2.1 years.
Regards,
John McCarthy |
