Sandvine Management Surrenders Stock OptionsSandvine, (a leading provider of intelligent broadband network solutions for cable, DSL, FTTx, fixed wireless and mobile operators, today announced that certain members of Sandvine's management team have surrendered, for no consideration, 780,000 stock options previously issued to them. Sandvine has canceled the options.
"These options were not providing sufficient short-term value to Sandvine and this additional capacity in our option pool can be better used in the future to attract and retain the best talent to help Sandvine become the leading supplier of network policy control solutions for all broadband access markets," said Dave Caputo, Sandvine's president and chief executive officer.
As a result of the surrender, the unamortized expense related to these options of $1.7 million will be immediately recognized. The Company anticipates that its non-cash stock-based compensation expense for the fourth quarter of 2009 will be $1.7 million higher than it would have otherwise been, had the surrender not taken place. The Company also expects that its non-cash stock-based compensation expense will be reduced by $0.6 million in fiscal years 2010 and 2011 and by $0.5 million in fiscal year 2012 as a result of the surrender.
Of the 780,000 surrendered options, 520,000 had a strike price of $6.59 and an expiry date in July 2017. The remaining 260,000 options had a strike price of $4.05 and an expiry date in January 2018. For the purposes of disclosure under the rules of the AIM market, Sandvine confirms that Dave Caputo, CEO, and Scott Hamilton, CFO, each also being Directors of Sandvine, have surrendered 150,000 and 90,000 options respectively in connection with the above.
December 1, 2009
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