Riverdeep executive chairman Mr Barry O'Callaghan received $500,000 ( €553,464) in pay for the year to end-June 2001, according to the company's latest filing with the US Securities and Exchange Commission. Form 20-F shows Mr O'Callaghan received a salary of $250,000 and a bonus payment of $250,000 for the year. Company president, product development and operations officer Ms Gail Pierson received a total of $300,000 - a salary of $195,000 and a bonus of $105,000 for the year.
In addition to his salary and bonus, Mr O'Callaghan was granted options over 3.6 million Riverdeeep shares at a weighted average exercise price of $18.12 per share.
The shares are currently trading at $16.90 and, over the year June 2000 to June 2001, they traded between $12 and $30. Vice-chairman Mr James Levy received 450,000 options at an exercise price of $24.78 per share. Directors Mr Kyran McLaughlin and Mr Thomas Kearney each received 150,000 share options at an exercise price of $23.46 while director Mr Lee Dayton received 450,000 options also exercisable at $23.46.
In the filing, Riverdeep said it would start to implement a number of new accounting standards in its current financial year (from July 1st, 2001).
"We will apply the new rules on accounting for goodwill and other intangible assets beginning July 1st, 2001. During fiscal 2002, we will perform the first of the required impairment tests of goodwill and indefinite-lived intangible assets and determine what effect this will have on our earnings and financial position," it said. Among the risks to the business, Riverdeep mentioned:
• possible inability to achieve and maintain broader market acceptance;
• expenses could grow faster than revenue growth would justify;
• changes in US public school funding could slow investment in its products;
• possible difficulties integrating the acquisitions on which Riverdeep's growth is based.
Riverdeep described its market - education software for under-12s and e-learning solutions - as "intensely competitive". Many of its competitors had larger customer bases, greater brand recognition and significantly greater financial, marketing and other resources and could devote substantially greater resources to product development, marketing and promotional campaigns including website and systems development, it said.
Riverdeep said increased competition "could result in price reductions, reduced margins or loss of market share, any of which could materially adversely affect our business, results of operations and financial condition".
