SOHU » Topics » 4. STOCK-BASED COMPENSATION

This excerpt taken from the SOHU 10-Q filed May 2, 2005.

4. STOCK-BASED COMPENSATION

 

The following table illustrates the effect on net income and income per share if the Company had applied the fair value recognition provisions of SFAS No. 123, using Black-Scholes option pricing model, to stock-based employee compensation for the three months ended March 31, 2005 and 2004 (in thousands except per share data):

 

     Three Months Ended
March 31,


 
     2005

    2004

 

Net income as reported:

   $ 5,714     $ 10,930  

Add: Stock-based compensation expense included in reported net income

     1       5  

Deduct: Stock-based compensation expense determined under fair value based method

     (780 )     (1,450 )
    


 


Pro forma net income

   $ 4,935     $ 9,485  
    


 


Basic net income per share:

                

As reported

   $ 0.16     $ 0.30  
    


 


Pro forma

   $ 0.14     $ 0.26  
    


 


Diluted net income per share:

                

As reported

   $ 0.15     $ 0.27  
    


 


Pro forma

   $ 0.13     $ 0.23  
    


 


 

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