Letter To Shareholders - Mitac

H. The following sets forth the pro forma net (loss) income and earnings per share
based on the assumption that the compensation cost is accounted for using the fair
value method (the intrinsic value method) for the stock options granted before the
effectivity of R.O.C. SFAS No. 39, “Accounting for Share-based Payment":
For the year ended
December 31, 2009
For the year ended
December 31, 2008
Net income (loss)
Net income (loss)
stated in the
statement of income
Pro forma net income
$ 289,162
( 153,208 )
$ 459,289
( 131,376 )
Basic EPS (in
dollars)
EPS stated in the
statement of income
0.19
0.31
Pro forma EPS
0.10
( 0.09 )
Diluted EPS (in
dollars)
EPS stated in the
statement of income
0.14
0.25
Pro forma EPS
0.05
( 0.12 )
(a) The Company estimated the fair value of second stock option as of grant date
under Black-Scholes option model. The factor’s weighted average information
and fair value are listed as follows:
Grant date
December 7,
2006
Grant date
January 11,
2007
Dividend yield rate 0% 0%
Expected price volatility 29.09% 28.59%
Risk-free interest rate 1.83% 1.87%
Expected vesting period 3.75 years 3.75 years
Options granted (in shares) 32,000,000 32,000,000
Weighted-average fair value per
share (in dollars)
9.39 9.16
(b) The Company estimated the fair value of third stock option as of grant date
under Black-Scholes option model. The factor’s weighted average information
and fair value are listed as follows:
Grant date
July 30,
2007
Grant date
August 17,
2007
Dividend yield rate 0% 0%
Expected price volatility 29.92% 29.92%
Risk-free interest rate 2.44% 2.44%
Expected vesting period 3.75 years 3.75 years
Options granted (in shares) 32,000,000 32,000,000
Weighted-average fair value per
share (in dollars)
11.46 9.25
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