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OmniVision Technologies, Inc. Message Board

  • JesseJackster JesseJackster Apr 5, 2005 6:38 PM Flag

    MU Accelertion of options vesting

    As Maximus pointed out, MU's announcement today is interesting because they are trying to vest options sooner so that the company won't have to declare options grants as expense after the FASB ruling goes into effect later this year.

    This may have bearing on the recent OVTI insider sales (they were encouraged to take profit on their vested options so that it won't adversely affect EPS when they do have to be declared).

    ...Micron also today announced that on April 4, 2005, the Company's Governance and Compensation Committee of the Board of Directors approved accelerating the vesting of approximately 44.6 million stock options outstanding under the Company's stock plans. The options have a range of exercise prices of $12.00 to $44.90 and a weighted average exercise price of $14.08. The acceleration affects prior grants to the Company's officers of approximately 6.7 million options having a weighted average exercise price of $14.35. The closing price of the Company's common stock on April 1, 2005, the last trading day before approval of acceleration, was $10.26. The purpose of the accelerated vesting was to enable the Company to avoid recognizing future compensation expense associated with these options upon adoption of FASB Statement No. 123R, "Share-Based Payment". The aggregate pre-tax expense associated with the accelerated options that would have been reflected in the Company's consolidated financial statements beginning in fiscal 2006 was estimated at approximately $100 million.

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    • This is what I said earlier. There's a reason why OVTI executives exercised their incentive stock options now. They basically exchanged these options with higher cash compensation (recently announced) and new options at a higher strike price ($18 and change) also recently announced. Why would management issue options in the high $18 level, if they could have issued them at a much lower level (say $9 or $10 last year)?

      I think people are bashing management because the damn stock price isn't up every day or because they think management can completely control the price. The market's are inefficient and when they are you need to take advantage of them. Management at the last CC repeatedly said Inventory is not an issue, however, OVTI at $14.44 because of what new information????? Its inefficient markets just like when OVTI fell to $9... What insane investor sold his shares then? What insane long-term investor sells his shares now?

      Also, when were the last wave of insider trades prior to the most recent ones? Exactly a year ago. Also did you notice that last Fall Raymond Wu and Hong disposed of some shares as well at $12.81? Do you think they knew the stock price was completely undervalued? Of course they did, however, its recommended that you pay your estimated taxes on time.

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