3Ware 2003 Annual Report Download - page 66

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APPLIED MICRO CIRCUITS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
For purposes of pro forma disclosures, the estimated fair value of the options is amortized to expense over
the options’ vesting periods. The Company’s pro forma information under SFAS 123 and SFAS 148 is as
follows:
Fiscal Years Ended March 31,
2001 2002 2003
(In thousands, except per share amounts)
Net loss—as reported ........................................ $(436,215) $(3,605,690) $ (745,541)
Plus: Reported stock-based compensation ........................ 79,848 147,065 131,886
Less: Fair value stock-based compensation ....................... (329,394) (314,764) (435,940)
Net loss—pro forma ......................................... $(685,761) $(3,773,389) $(1,049,595)
Reported basic and diluted loss per share ........................ $ (1.63) $ (12.08) $ (2.47)
Pro forma basic and diluted loss per share ........................ $ (2.56) $ (12.64) $ (3.48)
Segments of a Business Enterprise
SFAS No. 131, “Disclosures about Segments of an Enterprise and Related Information” (“SFAS 131”)
establishes standards for the way that public business enterprises report information about operating segments in
annual consolidated financial statements and requires that those enterprises report selected information about
operating segments in interim financial reports. SFAS 131 also establishes standards for related disclosures about
products and services, geographic areas and major customers. The Company operates in one segment.
Recent Accounting Pronouncements
In April 2003, FASB issued SFAS No. 149, “Amendment of Statement 133 on Derivative Instruments and
Hedging Activities”, which amends and clarifies financial accounting and reporting for derivative instruments,
including certain derivative instruments embedded in other contracts and for hedging activities under SFAS No.
133, “Accounting for Derivative Instruments and Hedging Activities.” This statement is effective for contracts
entered into or modified and for hedging relationships designated after June 30, 2003. The Company does not
expect the adoption of this statement to have a material impact on its operating results or financial position.
In June 2002, the FASB issued SFAS 146, “Accounting for Costs Associated with Exit or Disposal
Activities”, which addresses issues regarding the recognition, measurement and reporting of costs associated with
exit and disposal activities, including restructuring activities. This statement requires that costs associated with
exit or disposal activities be recognized when they are incurred rather than at the date of a commitment to an exit
or disposal plan. In the fourth quarter of fiscal 2003, the Company adopted the provisions of SFAS 146.
Reclassification
Certain prior period amounts have been reclassified to conform to the current period presentation.
F-11