SMTC » Topics » Impact of Stock-based Compensation

This excerpt taken from the SMTC 10-Q filed Dec 5, 2008.

Impact of Stock-based Compensation

(in thousands)

 

     Three Months Ended     Nine Months Ended  
     October 26,
2008
    October 28,
2007
    October 26,
2008
    October 28,
2007
 

Stock-based compensation

   $ 3,836     $ 4,000     $ 13,089     $ 10,424  

Associated tax effect

     (634 )     (1,174 )     (3,095 )     (3,001 )
                                

Net effect on net income

   $ 3,202     $ 2,826     $ 9,994     $ 7,423  
                                

Net effect on earnings per share -

        

Basic

   $ 0.05     $ 0.04     $ 0.16     $ 0.11  

Diluted

   $ 0.05     $ 0.04     $ 0.16     $ 0.11  

Weighted average number of shares -

        

Basic

     61,233       63,726       61,432       67,692  

Diluted

     61,727       66,347       62,253       69,612  

For the third quarters of fiscal years 2009 and 2008, the tax benefit realized from option exercises was $1.6 million and $4.4 million, respectively. For the first nine months of fiscal years 2009 and 2008, the tax benefit realized from option exercises was $4.6 million and $7.3 million respectively.

This excerpt taken from the SMTC 10-Q filed Sep 4, 2008.

Impact of Stock-based Compensation

(in thousands)

 

     Three Months Ended     Six Months Ended  
     July 27,
2008
    July 29,
2007
    July 27,
2008
    July 29,
2007
 

Stock-based compensation

   $ 4,431     $ 3,950     $ 9,253     $ 6,424  

Associated tax effect

     (1,350 )     (1,158 )     (2,461 )     (1,863 )
                                

Net effect on net income

   $ 3,081     $ 2,792     $ 6,792     $ 4,561  
                                

Net effect on earnings per share -

        

Basic

   $ 0.05     $ 0.04     $ 0.11     $ 0.07  

Diluted

   $ 0.05     $ 0.04     $ 0.11     $ 0.06  

Weighted average number of shares -

        

Basic

     61,839       66,984       61,278       69,687  

Diluted

     62,584       68,844       62,135       71,212  

For the second quarters of fiscal years 2009 and 2008, the tax benefit realized from option exercises was $1.6 million and $1.9 million, respectively. For the first six months of fiscal years 2009 and 2008, the tax benefit realized from option exercises was $3.0 million and $2.9 million respectively.

This excerpt taken from the SMTC 10-Q filed Jun 6, 2008.

Impact of Stock-based Compensation

(in thousands)

 

     Three Months Ended  
     April 27,
2008
    April 29,
2007
 

Stock-based compensation

   $ 4,822     $ 2,474  

Associated tax effect

     (1,111 )     (705 )
                

Net effect on net income

   $ 3,711     $ 1,769  
                

Effect on earnings per share -

    

Basic

   $ 0.06     $ 0.02  

Diluted

   $ 0.06     $ 0.02  

Weighted average number of shares -

    

Basic

     61,352       72,379  

Diluted

     62,104       73,593  

For the first quarter of fiscal years 2009 and 2008, the tax benefit realized from option exercises was $1.4 million and $1.2 million respectively.

This excerpt taken from the SMTC 10-Q filed Dec 7, 2007.

Impact of Stock-based Compensation

(in thousands)

 

     Three Months Ended     Nine Months Ended  
     October 28,
2007
    October 29,
2006
    October 28,
2007
    October 29,
2006
 

Stock-based compensation

   $ 4,000     $ 3,763     $ 10,424     $ 11,951  

Associated tax effect

     (1,174 )     (1,081 )     (3,001 )     (3,425 )
                                

Stock-based compensation, net of tax

   $ 2,826     $ 2,682     $ 7,423     $ 8,526  
                                

Effect on earnings per share -

        

Basic

   $ 0.04     $ 0.04     $ 0.11     $ 0.12  

Diluted

   $ 0.04     $ 0.04     $ 0.11     $ 0.12  

Weighted average number of shares -

        

Basic

     63,726       72,298       67,692       72,388  

Diluted

     66,347       73,718       69,612       74,095  

For the three month periods ended October 28, 2007 and October 29, 2006, the tax benefit realized from option exercise activity was $1.8 million and $0.0 million, respectively. The tax benefit realized from option exercise activity for the nine month periods ended October 28, 2007 and October 29, 2006 was $4.7 million and $1.5 million, respectively.

 

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Stock Option Awards. The Company has historically granted stock option awards to both employees and non-employee directors. The grant date for these awards is equal to the measurement date. These awards were valued as of the measurement date and are amortized over the requisite vesting period. A summary of the activity for stock option awards in the three months and nine months ended October 28, 2007 is presented below:

This excerpt taken from the SMTC 10-Q filed Sep 7, 2007.

Impact of Stock-based Compensation

 

(in thousands)

   Three Months Ended     Six Months Ended  
     July 29
2007
    July 30
2006
    July 29
2007
    July 30
2006
 

Stock-based compensation

   $ 3,950     $ 4,207     $ 6,424     $ 8,188  

Associated tax effect

     (1,158 )     (1,253 )     (1,863 )     (2,344 )
                                

Net effect on net income

   $ 2,792     $ 2,954     $ 4,561     $ 5,844  
                                

Effect on earnings per share -

        

Basic

   $ 0.04     $ 0.04     $ 0.07     $ 0.08  

Diluted

   $ 0.04     $ 0.04     $ 0.06     $ 0.08  

Weighted average number of shares -

        

Basic

     66,984       72,291       69,687       72,433  

Diluted

     68,844       73,929       71,212       74,311  

For the three month periods ended July 29, 2007 and July 30, 2006, the tax benefit realized from option exercise activity was $1.9 million and $0.1 million, respectively. The tax benefit realized from option exercise activity for the six month periods ended July 29, 2007 and July 30, 2006 was $3.1 million and $1.4 million, respectively.

 

9


Stock Option Awards. The Company has historically granted stock option awards to both employees and non-employee directors. The grant date for these awards is equal to the measurement date. These awards were valued as of the measurement date and are amortized over the requisite vesting period. A summary of the activity for stock option awards in the three months and six months ended July 29, 2007 is presented below:

This excerpt taken from the SMTC 10-Q filed Jun 8, 2007.

Impact of Stock-based Compensation

(in thousands)

 

     Three Months Ended  
     April 29
2007
    April 30
2006
 

Stock-based compensation

   $ 2,474     $ 3,981  

Associated tax effect

     (705 )     (1,091 )
                

Net effect on net income

   $ 1,769     $ 2,890  
                

Effect on earnings per share -

    

Basic

   $ 0.02     $ 0.04  

Diluted

   $ 0.02     $ 0.04  

Weighted average number of shares -

    

Basic

     72,379       72,575  

Diluted

     73,593       74,715  

The Company has various equity award plans that provide for granting stock based awards to employees and directors of the Company. The plans provide for the granting of several available forms of stock compensation of which only stock options have been granted to date. The Company has also issued some stock-based compensation outside of any plan, including options and restricted stock awarded as inducements to join the Company.

The Company determines the fair value of each option award on the date of grant using the Black-Scholes valuation model that uses the assumptions in the following table. Expected volatilities are based on historical volatility using daily and monthly stock price observations. For option grants made after January 30, 2006, the Company uses an expected life equal to the midpoint between the vesting date and the date of contractual expiration of the options, as permitted by the Securities and Exchange Commission’s (“SEC”) Staff Accounting Bulletin 107. For option grants issued before January 30, 2006, the Company had used a consistent 5-year expected life assumption. The Company has not historically paid a cash dividend and the Board of Directors has not indicated intent to declare a cash dividend in the foreseeable future. Accordingly, a dividend yield of zero has been assumed for purposes of estimating the fair value of employee stock options. The risk-free interest rate is based on the U.S. Treasury yield curve at the time of grant. The estimated fair value of the employee stock options is amortized to expense using the straight-line method over the vesting period.

 

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This excerpt taken from the SMTC 10-K filed Apr 13, 2007.

Impact of Stock-based Compensation

( in thousands)

 

     Fiscal Year
2007
    Fiscal Year
2006
    Fiscal Year
2005
 

Stock-based compensation

   $ 14,936     $ 1,527     $ 5,637  

Associated tax effect

     (2,035 )     (433 )     (1,657 )
                        

Net effect on net income

   $ 12,901     $ 1,094     $ 3,980  
                        

Effect on earnings per share -

      

Basic

   $ 0.18     $ 0.02     $ 0.05  

Diluted

   $ 0.17     $ 0.02     $ 0.05  

Weighted average number of shares -

      

Basic

     72,372       73,436       74,187  

Diluted

     74,017       76,114       78,257  

In fiscal years 1997 through 2006, the Company reported the pro forma impact of stock-based compensation as permitted by APB 25. Net income and net income per share for fiscal years 2006 and 2005 would have been reduced to the following pro forma amounts had the Company applied the recognition provisions of FAS123 in this prior year period.

 

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