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Technology Stocks : PLASMA THERM (PTIS) -- Ignore unavailable to you. Want to Upgrade?

To: Bigpoppabass who wrote (393)	3/18/1998 1:18:00 AM
From: John McCarthy	Read Replies (1) \| Respond to of 509

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

To: Bigpoppabass who wrote (393)	3/18/1998 1:13:00 PM
From: JM	Read Replies (1) \| Respond to of 509

<<They are greedy and have little confidence in their own ability to perform well in the future. >> Not so sure this is the only conclusion that can be drawn from the options plan. The labor market is very tight, especially in the high tech arena. This employee options plan may be one way for a small company like PTIS to keep key technical people from being lured away. Longer term, the increased tenure and subsequent loyalty of these individuals may determine growth going forward. This is particularly important in the high tech industries. Perhaps, this option plan will assure PTIS ability to perform well in the future. Could the anticipation of the additional shares hitting the market, be the reason for the lackluster reaction to a good earnings report?