Creative 2005 Annual Report Download - page 35

Download and view the complete annual report

Please find page 35 of the 2005 Creative annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 44

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44

35
Creative Pro Forma Disclosures
The fair value of the purchase rights under the Creative employee share purchase plan and stock option plan is estimated at the date
of the grant using the Black-Scholes model based on the following assumptions:
Fiscal year 2005 Fiscal year 2004 Fiscal year 2003
Volatility – 35% 45%
Risk-free interest rates
Share purchase plan – 2.78% to 3.26% 2.18% to 3.26%
Stock options – 1.24% to 2.27% 1.27% to 3.01%
Dividend yield – 2.0% 3.0%
Expected lives:
Share purchase plan – 6 months 6 months
Stock options – 0.01 years after vest date 0.01 years after vest date
Years ended June 30
2005 2004 2003
Weighted average fair value of stock options granted:
Stock options:
At market $ – $ 2.06 $ 1.70
Below market $ – $ – $ –
The following table illustrates the effect on net income and earnings per share if the company had applied the fair value recognition
provisions of SFAS No. 123 to stock-based employee compensation:
(In US$’000, except for per share data) Years ended June 30
2005 2004 2003
Net income, as reported $ 588 $ 134,247 $ 23,377
Less: Total stock-based employee compensation expense
determined under fair value based method for all awards,
net of related tax effects (1,087) (2,949) (7,309)
Add: Stock-based employee compensation
expense included in reported net income,
net of related tax effects 1,504 2,256 3,703
Pro forma net income $ 1,005 $ 133,554 $ 19,771
Earnings per share:
Basic – as reported $ 0.01 $ 1.66 $ 0.30
Basic – pro forma $ 0.01 $ 1.66 $ 0.25
Diluted – as reported $ 0.01 $ 1.61 $ 0.29
Diluted – pro forma $ 0.01 $ 1.60 $ 0.25