Business Context and Reporting Period
Company: TTM Technologies, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: June 8, 2005
Event: Acceleration of stock option vesting by the Compensation Committee.
Key Financial Metrics
This filing does not report standard operating metrics such as revenue, profit, cash flow, or debt levels. The primary financial data points disclosed are:
- Options Accelerated: Approximately 986,100 unvested stock options.
- Option Characteristics: "Out-of-the-money" options with exercise prices ranging from $10.15 to $16.00.
- Stock Price: $8.48 per share (closing price on June 8, 2005).
- Projected Cost Savings: Approximately $7.0 million (pre-tax basis) in future compensation costs.
Material Changes
The filing details a specific corporate action rather than a change in operational performance. The material change is the acceleration of vesting for specific stock options. This action was taken in anticipation of the adoption of Statement of Financial Accounting Standards No. 123 (revised 2004) ("SFAS 123R").
Guidance, Outlook, and Management Commentary
Management Rationale: The Company accelerated the vesting of these options to avoid recognizing future compensation costs associated with them upon the adoption of SFAS 123R.
Financial Impact: Management expects this acceleration to reduce the stock option cost the Company would otherwise be required to record beginning in 2006 by approximately $7.0 million on a pre-tax basis.
Risks and Contingencies: The filing does not explicitly list new risks, though the action is contingent on the effective date and accounting treatment of SFAS 123R.
Investor Verification Checklist
- Verify the exact number of options accelerated (approx. 986,100) and their specific exercise price range ($10.15 to $16.00).
- Confirm the projected $7.0 million pre-tax cost reduction in future financial statements starting in 2006.
- Review the Company's subsequent filings for the actual adoption date and accounting impact of SFAS 123R.
- Note that the options were accelerated while "out-of-the-money" (exercise price higher than the $8.48 market price).