3Ware 2003 Annual Report Download - page 75

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APPLIED MICRO CIRCUITS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Common Shares Reserved for Future Issuance
At March 31, 2003, the Company has the following shares of common stock reserved for issuance upon the
exercise of equity instruments (in thousands):
Stock Options:
Granted and outstanding ................................................... 60,987
Authorized for future grants ................................................ 51,344
Stock purchase plans ......................................................... 7,750
120,081
Stock Option Exchange Offer
On November 27, 2001, the Company completed the offering of a voluntary stock option exchange program
to its employees, officers and board members. Under the program, participants were able to tender for
cancellation stock options with an exercise price of at least $20 per share for an equal number of replacement
options to be granted at least six months and one day from the cancellation under certain terms and conditions as
set forth in the Company’s offer. The exercise price of the replacement options would be equal to the market
price of AMCC common stock on the replacement option grant date. The terms and conditions of the
replacement options, including the vesting schedules, would be substantially the same as the terms and
conditions of the options cancelled. The Company accepted options to purchase approximately 31.1 million
shares of Company stock for exchange pursuant to this program. On May 28, 2002, the Company issued
approximately 30.4 million options with an exercise price of $6.54 to complete the program.
Stock Repurchase
On October 16, 2002, our board of directors approved a stock repurchase program, whereby the Company is
authorized to expend up to $200.0 million to purchase our common stock. Depending on market conditions and
other factors, purchases may be made from time to time in the open market and in negotiated transactions,
including block transactions, at times and prices considered appropriate by the Company. Such program may be
discontinued at any time. As of March 31, 2003, the Company had not made any purchases under the program.
Under a similar program which expired in September 2002, the Company purchased 3.6 million shares of
common stock for $29.4 million.
7. Income Taxes
Income tax expense (benefit) consists of the following (in thousands):
Fiscal Years Ended March 31,
2001 2002 2003
Current:
Federal ......................................................... $ — $ (5,827) $ —
Foreign ........................................................ 202 225 194
State ........................................................... 308 353 293
Total current ................................................ 510 (5,249) 487
Deferred:
Federal ......................................................... (1,392) (38,913) (425)
State ........................................................... (199) (36,767) (62)
Total deferred ............................................... (1,591) (75,680) (487)
$(1,081) $(80,929) $ —
F-20