To: James Strauss who wrote (3296 ) 6/26/1998 10:44:00 AM From: James Strauss Read Replies (1) | Respond to of 4081
From The 10k ~~~~~~~~~~~~~~~~~~~~ THE 3DO COMPANY AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 1998, 1997, AND 1996 Pro Forma Net Income (Loss) Pursuant to SFAS No. 123, "Accounting for Stock-Based Compensation," the Company is required to disclose the pro forma effects on net income (loss) and net income (loss) per share data as if the Company had elected to use the fair value approach to account for all its employee stock-based compensation plans. Had compensation cost for the Company's plans been determined consistent with the fair value approach enumerated in SFAS No. 123, the Company's pro forma net income and pro forma net income per share for the year ended March 31, 1998 and 1997 would have been as indicated below: Years Ended March 31, -------------------------------------- 1998 1997 1996 ---------- ---------- ---------- Net income (loss) as reported $ 22,537 $ 13,271 $ (34,668) Pro forma $ 16,483 $ 7,230 $ (36,064) Net income (loss) per basic share as reported $ 0.85 $ 0.48 $ (1.36) Pro forma $ 0.62 $ 0.26 $ (1.42) Net income (loss) per diluted share as reported $ 0.83 $ 0.46 $ (1.36) Pro forma $ 0.61 $ 0.25 $ (1.42) The effects of applying SFAS No. 123 may not be representative of the effects on reported operating results for future years as the pro forma calculations are based on grants made in fiscal years 1998, 1997 and 1996 only. The fair value of employee stock options and employee stock purchase plan rights are estimated on the date of grant using the Black Scholes option-pricing model with the following weighted-average assumptions used for fiscal years 1998, 1997 and 1996: Jim