Financial statements 2008

14. Earnings per share (EPS)

14. Earnings per share (EPS)

Basic earnings per share

Basic earnings per share are calculated by dividing the net income attributable to shareholders by the weighted average number of shares outstanding during the year. The number of outstanding shares is calculated by deducting the average number of shares purchased and held as treasury shares from the total of all issued shares.

In CHF'000 2008 2007
Net income attributable to bearer shareholders -13 350 60 221
Net income attributable to registered shareholders -1 295 5 875
     
Total net income -14 645 66 096
     
Weighted average number of bearer shares outstanding 47 730 808 47 457 434
Weighted average number of registered shares outstanding 46 300 000 46 300 000
     
Basic earnings per share (CHF)    
Bearer shares -0.2797 1.2689
Registered shares -0.0280 0.1269

Diluted earnings per share

The diluted earnings per share calculation takes into account all potential dilutions to the earnings per share arising from the convertible bonds and options on Kudelski SA shares.

In CHF'000 2008 2007
Net income attributed to equity holders of the company -14 645 66 096
Elimination of interest expense on convertible debt * - -
Tax impact on above adjustments - -
     
Net income used to determine earnings per share -14 645 66 096
     
Of which:    
- attributable to bearer shareholders -13 350 60 229
- attributable to registered shareholders -1 295 5 867
     
  -14 645 66 096
     
Weighted average number of bearer shares outstanding 47 730 808 47 457 434
     
Effect of dilutive potential bearer share:    
- employee stock option plan (ESOP) * - 71 911
- convertible bond* - -
     
Weighted average number of bearer shares for the purpose of diluted earnings per share 47 730 808 47 529 345
     
Weighted average number of registered shares for the purpose of diluted earnings per share 46 300 000 46 300 000
     
     
Diluted earnings per share (CHF)    
Bearer shares -0.2797 1.2672
Registered shares -0.0280 0.1267

* Shares equivalent of 5 225 440 (2007: 5 225 440) relating to the convertible bonds were excluded from the calculation of diluted earnings per share as they were anti-dilutive. In 2008, the employee stock option plan is anti-dilutive since the strike price of the options is greater than the year average stock market price.