This excerpt taken from the SMMX 10-Q filed May 5, 2006.
below and $1.0 million of amortization of intangible assets associated with acquisitions. Included in the net income for the quarter ended March 31, 2005 were $0.7 million of amortization of intangible assets associated with acquisitions.
We adopted SFAS 123R, effective January 1, 2006, using the modified prospective transition method. We analyzed our stock-based compensation strategies prior to the adoption of SFAS 123R and made the decision to grant restricted stock units rather than stock options during the three months ended March 31, 2006.
To avoid stock-based compensation expenses under SFAS 123R, on two separate occasions during the three month period ended September 30, 2005, the Compensation Committee of our Board of Directors approved amendments to the terms of outstanding options to purchase shares of our common stock. On each occasion, the terms of options with exercise prices above a designated threshold were amended to become fully-vested and exercisable on December 30, 2005, provided that the holder of such option remained an employee or consultant of Symyx on such date. The first occasion was on September 13, 2005, when we amended the terms of outstanding options to purchase approximately 251,000 shares of our common stock with exercise prices above $30 per share. The second occasion was on September 22, 2005, when we amended the terms of outstanding options to purchase approximately 159,000 shares of our common stock with exercise prices equal or greater than $24.67 per share. All such options were issued pursuant to the terms of our various stock plans. No options held by our executive officers or members of our Board of Directors were accelerated pursuant to this authorization. No compensation expense was recorded in connection with the acceleration of the vesting schedule of the above options because the fair market value of the common stock was less than the exercise price of the accelerated options on each of the respective measurement dates. These accelerations reduced compensation expenses that would have been recorded in accordance with SFAS 123R in the Condensed Consolidated Income Statements for the period ended March 31, 2006.