Audiovox 2004 Annual Report Download - page 76

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AUDIOVOX CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements, Continued
November 30, 2002, 2003 and 2004
(Dollars in thousands, except share and per share data)
requires that the Company provide pro−forma information regarding net
income (loss) and net income (loss) per common share as if
compensation cost for the Company's stock option programs had been
determined in accordance with the fair value method prescribed
therein. The Company adopted the disclosure portion of SFAS No. 148,
"Accounting for Stock−Based Compensation−Transition and Disclosure"
requiring more prominent pro−forma disclosures as described in SFAS
No. 123. The following table illustrates the effect on net income
(loss) and net income (loss) per common share as if the Company had
measured the compensation cost for the Company's stock option programs
under the fair value method in each period presented:
Years Ended November 30,
−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−−
2002 2003 2004
−−−−−−−− −−−−−−−− −−−−−−−−
Net income (loss):
As reported $(14,040) $ 11,239 $ 77,200
Stock based compensation expense 864 −− −−
−−−−−−−− −−−−−−−− −−−−−−−−
Pro−forma $(14,904) $ 11,239 $ 77,200
======== ======== ========
Net income (loss) per common share (basic):
As reported $ (0.64) $ 0.51 $ 3.52
Pro−forma $ (0.68) $ 0.51 $ 3.52
Net income (loss) per common share (diluted):
As reported $ (0.64) $ 0.51 $ 3.45
Pro−forma $ (0.68) $ 0.51 $ 3.45
Pro−forma net income (loss) reflect only options granted after
November 30, 1995. Therefore, the full impact of calculating
compensation cost for stock options under SFAS No. 123 is not
reflected in the pro−forma net income (loss) amounts presented above
because compensation cost is reflected over the options' vesting
period and compensation cost for options granted prior to December 1,
1995 was not considered. Therefore, the pro− forma net income (loss)
may not be representative of the effects on reported net income (loss)
for future years.
(u) Accumulated Other Comprehensive Income (Loss)
Other comprehensive income (loss) includes foreign currency
translation adjustments and unrealized gains and losses on investment
securities classified as available−for−sale.
The change in net unrealized gain (loss) on marketable securities of
$422, $1,734 and $(1,931) for the years ended November 30, 2002, 2003
and 2004 is net of tax of $260, $1,063 and $(1,184) , respectively.
During the year ended November 30, 2004, $914 of translation gains
were transferred from the cumulative foreign currency translation
account
73