Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Cymer (CYMI) -- Ignore unavailable to you. Want to Upgrade?

To: rsc who wrote (9379)	11/13/1997 12:56:00 PM
From: rsc	Respond to of 25960

From the 10-Q. Might this new accounting method, required after 12/97, be responsible for the lower than expected EPS statements for 1998? 2. EARNINGS PER SHARE Earnings Per Share - Earnings per share is computed based on the weighted average number of common and common equivalent shares (common stock options and warrants) outstanding during each period using the treasury stock method. Primary earnings per share is not significantly different from fully diluted earnings per share for any of the periods indicated. 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. The pro forma effects of adopting SFAS No. 128 are as follows: Three Months Ended Nine Months Ended September 30, 1997 September 30, 1997 (shares in thousands) (shares in thousands) Basic: Weighted average number of common shares 28,469 28,111 Earnings per share $0.25 $0.67 Diluted: Weighted average number of common shares and common share equivalents outstanding 30,503 30,329 Earnings per share $0.23 $0.62