3Ware 2004 Annual Report Download - page 93

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APPLIED MICRO CIRCUITS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
The following is a further breakdown of the options outstanding at March 31, 2004 (options in thousands):
Range of Exercise Prices
Options
Outstanding
Weighted
Average
Remaining
Contractual
Life
Weighted
Average
Exercise Price
Options
Exercisable
Weighted
Average
Exercise Price
$0.03–$ 4.08 10,704 7.80 $ 3.24 5,338 $ 2.86
$4.09–$ 5.65 11,639 8.66 $ 5.26 3,236 $ 4.98
$5.66–$ 6.48 6,630 7.14 $ 6.20 3,741 $ 6.35
$6.49–$ 6.54 23,915 6.40 $ 6.54 22,077 $ 6.54
$6.55–$22.00 9,507 6.19 $15.58 8,824 $15.99
$22.01–$99.50 1,367 6.29 $32.84 1,258 $33.32
$0.03–$99.50 63,762 7.09 $ 7.63 44,474 $ 8.60
Employee Stock Purchase Plans
The Company has in effect an employee stock purchase plan under which 14.4 million shares of common
stock have been reserved for issuance. Under the terms of this plan, purchases are made semiannually and the
purchase price of the common stock is equal to 85% of the fair market value of the common stock on the first or
last day of the offering period, whichever is lower. At March 31, 2004, approximately 8.6 million shares had
been issued under this plan and approximately 5.8 million shares were available for future issuance.
Common Shares Reserved for Future Issuance
At March 31, 2004, 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 ................................................... 63,762
Authorized for future grants ................................................ 48,315
Stock purchase plans ......................................................... 5,777
117,854
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.
F-23