BILLERICA, Mass., Dec. 22 /PRNewswire-FirstCall/ -- GSI Group Inc.
(Nasdaq: GSIG), announced today that it has accelerated vesting of all
outstanding unvested stock options. The Board's decision to accelerate the
vesting of these options was made primarily to reduce future compensation
expense associated with the options upon the planned adoption of Financial
Accounting Standards No. 123R, Share-Based Payment (SFAS 123R) in 2006.
As a result of the acceleration, options to purchase 558,446 shares of GSI
Group Inc.'s common stock, which would otherwise have vested over the next 4
years, are now fully vested. This includes 196,571 options held by executive
officers, 180,000 options held by non-employee directors, 10,000 options held
by a consultant and 171,875 options held by other employees. The options
represent approximately 16% of the total options presently outstanding. The
total weighted average option exercise price per share is $10.64. The closing
price of GSI Group Inc. stock on December 21, 2005 was $11.20.
Further, in order to prevent unintended personal benefits to officers and
directors, the Board of Directors have imposed restrictions on any shares
received through the exercise of accelerated options held by those
individuals. Those restrictions prohibit the sales of shares purchased under
accelerated options until the earlier of: 1.) the date on which the options
would otherwise have vested under the original option grants; or 2.) twelve
months from the date of acceleration; or 3.) termination of employment or
resignation from the Board.
As a result of the accelerated vesting of stock options in advance of the
Company's adoption of SFAS 123R, GSIG expects to substantially reduce pre-tax
stock compensation expense it would otherwise be required to record in 2006.
GSI Group Inc. supplies precision motion control components, lasers and
laser-based advanced manufacturing systems to the global medical,
semiconductor, electronics, and industrial markets. GSI's common shares are
listed on Nasdaq (GSIG). For more information on GSI Group, please visit
http://www.gsig.com.
Certain statements in this news release may constitute forward-looking
statements within the meaning of the United States Private Securities
Litigation Reform Act of 1995, Section 27A of the United States Securities Act
of 1933 and Section 21E of the United States Securities Exchange Act of 1934.
These forward-looking statements may relate to anticipated financial
performance, management's plans and objectives for future operations, business
prospects, outcome of regulatory proceedings, market conditions, tax issues
and other matters. All statements contained in this news release that do not
relate to matters of historical fact should be considered forward-looking
statements, and are generally identified by words such as "anticipate,"
"believe," "estimate," "expect," "intend," "plan," "objective" and other
similar expressions. Readers should not place undue reliance on the forward-
looking statements contained in this news release. Such statements are based
on management's beliefs and assumptions and on information currently available
to management and are subject to risks, uncertainties and changes in
condition, significance, value and effect. Other risks include the fact that
the Company's sales have been and are expected to continue to be dependent
upon customer capital equipment expenditures, which are, in turn, affected by
business cycles in the markets served by those customers. Other factors
include volatility in the semiconductor industry, the risk of order delays and
cancellations, the risk of delays by customers in introducing their new
products and market acceptance of products incorporating subsystems supplied
by the Company, similar risks to the Company of delays in its new products,
our ability to continue to reduce costs and capital expenditures, our ability
to focus R&D investment and integrate acquisitions and other risks detailed in
reports and documents filed by the Company with the United States Securities
and Exchange Commission and with securities regulatory authorities in Canada.
Such risks, uncertainties and changes in condition, significance, value and
effect, many of which are beyond the Company's control, could cause the
Company's actual results and other future events to differ materially from
those anticipated. The Company does not, however, assume any obligation to
update these forward-looking statements to reflect actual results, changes in
assumptions or changes in other factors affecting such forward-looking
statements.
GSI-G
For more information, please contact:
Ray Ruddy
Director of Investor Relations
978-439-5511 x6170
SOURCE GSI Group Inc.
 back to top
Company News On-Call:
http://www.prnewswire.com/comp/107189.html
Related links:
http://www.gsig.com
CONTACT:
Ray Ruddy, Director of Investor Relations at
GSI Group Inc., +1-978-439-5511, x6170
|
