SiliconBeat

Marvell Technology, which offered employees the chance to exchange their underwater stock options in return for shares of restriced stock, reported Tuesday that 3,389 eligible employees, or about two-thirds of its workforce, took the company up on the offer, turning over options covering an aggregate of 31.1 million shares.

In exchange, the group received among them 3.36 million shares of restricted stock. The company also paid out $876,920 to employees who would otherwise have been entitled to a restricted stock grant equal to or less than 150 restricted stock units. The companies top executives and its non-employee directors were not eligible to participate.

The canceled options are no longer available for future grants under any equity plan, according to the filing.

Earlier this month the Bermuda-based company that operates out of Santa Clara joined a host of other chip companies lowering its financial expectations, saying it expected its sales range to be about 28 percent lower than previously forecast.