D-Link 2004 Annual Report Download - page 51

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23
D-LINK CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Continued)
Based on the resolution of D-Link’ s board of directors, 112,044 thousand shares of treasury stock
were cancelled on December 27, 2004, common stock of $33,220 thousand and capital surplus of
$16,988 thousand were eliminated, and the insufficiency amounting to $61,836 thousand was
deducted from retained earnings. The capital decrease was registered with the government
authorities on January 11, 2005.
As of December 31, 2004, D-Link had bought back 12,000 thousand common shares for
$448,716 thousand, recorded under stockholders’ equity.
Pursuant to the ROC Securities and Exchange Law, treasury stock should not exceed 10% of a
company’ s total issued shares, and the total amount of the treasury stock should not exceed the
aggregation of retained earnings, capital surplus derived from paid-in capital in excess of par
value, plus other realized capital surplus. Based on the financial statements of D-Link in 2003,
the maximum number of shares and the maximum amount D-Link could buy back on December
31, 2004, were 54,752 thousand shares and $6,483,873 thousand, respectively.
According to SFB regulations, treasury stock cannot be pledged as collateral. Until the treasury
stock is transferred, it does not carry any shareholder rights.
15. Net Income per Common Share
2003 2004
Before
taxes
After
taxes
Before
taxes
After
taxes
Basic net income per common share:
Income applicable to common stockholders $ 1,512,144 1,374,135 2,881,962 2,600,935
Weighted-average common shares
outstanding (thousand shares) 499,812 499,812 539,060 539,060
Basic net income per common share (New
Taiwan dollars) $ 3.03 2.75 5.35 4.82
Diluted net income per common share:
Income applicable to common stockholders $ 1,512,144 1,374,135 2,881,962 2,600,935
Dilutive effect of potential common stock:
convertible bonds 59,596 44,697 - -
$ 1,571,740 1,418,832 2,881,962 2,600,935
Weighted-average common shares
outstanding (thousand shares) 499,812 499,812 539,060 539,060