Business Context and Reporting Period
Company: TTM Technologies, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: September 14, 2005
Event: Acceleration of stock option vesting by the Compensation Committee.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, debt, or liquidity metrics. It focuses on a specific compensation event.
- Stock Price (Sept 14, 2005): $7.34 per share.
- Options Affected: Approximately 211,000 unvested options.
- Option Exercise Prices: Ranging from $8.00 to $9.75 (out-of-the-money).
- Estimated Expense Reduction: Approximately $1 million (pre-tax) beginning in 2006.
Material Changes
The Company accelerated the vesting of out-of-the-money stock options in anticipation of the adoption of Statement of Financial Accounting Standards No. 123 (revised 2004) "Share-Based Payment" (SFAS 123R). This action is intended to avoid recognizing future compensation expense associated with these specific options upon the adoption of the new standard.
Outlook, Risks, and Management Commentary
Management Commentary: The acceleration was approved to mitigate the earnings impact of SFAS 123R. By vesting these options early, the Company expects to reduce the stock option expense it would otherwise be required to record starting in 2006 by approximately $1 million on a pre-tax basis.
Risks/Contingencies: The filing does not disclose new material risks or contingencies beyond the accounting transition to SFAS 123R.
Investor Verification Checklist
- Verify the exact number of options accelerated (approx. 211,000) and their specific exercise price distribution.
- Confirm the effective date of SFAS 123R adoption for the Company to validate the timing of the expense reduction.
- Review subsequent filings to ensure the projected $1 million pre-tax expense reduction was realized in 2006 financial statements.
- Assess the impact of vesting out-of-the-money options on employee retention and future compensation structures.