8x8 2005 Annual Report Download - page 64

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Option activity under the Company's stock option plans since March 31, 2002, excluding the stock option plans of
its subsidiaries, Netergy Microelectronics, Inc. and Centile, Inc. is summarized as follows:
Significant option groups outstanding at March 31, 2005 and related weighted average exercise price and contractual
life information for 8x8, Inc.'s stock option plans are as follows:
The Company recognizes deferred compensation over the related vesting period of the options (which is generally
forty-eight months). The Company recognized stock compensation expense in fiscal 2004 of $1.3 million, which
was comprised of: i) $1,164,000 attributable to the change in option terms for certain employees that terminated
employment, ii) $143,000 attributable to a change in option terms for a director of the Company upon his
resignation from the Board, and iii) $3,000 of expense related to amortization of deferred compensation. Stock
compensation expense in fiscal 2005 and 2003 was not significant. Deferred compensation is subject to reduction for
any employee who terminates employment prior to the expiration of such employee's option vesting period.
Netergy Microelectronics, Inc. 2000 Stock Option Plan
Weighted
Shares Average
Shares Subject to Exercise
Available Options Price
for Grant Outs tanding Per Share
Balance at March 31, 2002.........................................
.
673,608 9,899,826 $ 2.95
Change in options available for grant...................... 1,370,187 -- --
Granted.........................................................................
.
(857,800) 857,800 0.48
Exercised....................................................................... -- (53,040) 0.37
Returned to plan.......................................................... 3,089,997 (3,089,997) 3.05
Balance at March 31, 2003.........................................
.
4,275,992 7,614,589 2.65
Change in options available for grant...................... 829,488 -- --
Granted.........................................................................
.
(2,420,000) 2,420,000 2.12
Exercised....................................................................... -- (1,445,438) 1.30
Returned to plan.......................................................... 2,375,843 (2,375,843) 2.64
Balance at March 31, 2004.........................................
.
5,061,323 6,213,308 2.77
Change in options available for grant...................... 975,000 -- --
Granted.........................................................................
.
(1,860,500) 1,860,500 2.39
Exercised....................................................................... -- (251,610) 1.38
Returned to plan.......................................................... 676,462 (676,462) 5.06
Balance at March 31, 2005.........................................
.
4,852,285 7,145,736 $ 2.50
Options Outstanding Options Exercisable
Weighted Weighted Weighted
Average Average Average
Exercise Remaining Exercise
Price Contractual Price
Shares Per Share Life (Years) Shares Per Share
$ 0.01 to $ 3.16................................
.
5,506,344 $ 1.74 7.2 2,993,529 $ 1.68
$ 3.16 to $ 6.32................................
.
1,341,892 $ 3.72 7.3 753,238 $ 3.76
$ 6.32 to $ 9.49................................
.
96,500 $ 7.92 4.6 96,500 $ 7.92
$ 9.49 to $12.65...............................
.
185,000 $ 12.30 5.2 185,000 $ 12.30
$12.65 to $15.81..............................
.
6,000 $ 14.87 5.1 6,000 $ 14.87
$15.81 to $31.63..............................
.
10,000 $ 18.00 4.9 10,000 $ 18.00
7,145,736 4,044,267