Note 5 - Income (Loss) Per Share

9 Months Ended

Sep. 30, 2014

5. Income (Loss) per Share

Basic income (loss) per share is calculated based upon the weighted-average number of common shares outstanding during the period and contingently issuable shares such as fully vested deferred stock units, or DSUs, as of the date all necessary conditions for issuance have been met. Diluted income per share gives effect to all potential dilutive common shares outstanding during the period, such as stock options and nonvested DSUs.

As the Company reported a net loss for the three and nine months ended September 30, 2014, the diluted net loss per share, as reported, is equal to the basic net loss per share since the effect of the assumed exercise of stock options and conversion of nonvested DSUs is anti-dilutive. Total stock options and nonvested DSUs excluded from the three and nine months ended September 30, 2014, net loss per share were 11,511,431 and 529,774, respectively. Additionally, as the Company reported a net loss for the three months ended September 30, 2013, total stock options and nonvested DSUs excluded from the three months ended September 30, 2013 were 10,305,452 and 131,184, respectively.

For the nine months ended September 30, 2013, options to purchase 8,391,236 shares of common stock with a weighted-average exercise price of $16.54 per share, respectively, were excluded in the computation of diluted net income per share because the effect from the assumed exercise of these options would be anti-dilutive.

The following table provides the calculation of basic and diluted net income (loss) per common share for each of the periods presented:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
	(in thousands, except per share data)
Basic and dilutive numerator:
Net income (loss)	$	(5,379	)	$	(159	)	$	(8,178	)	$	10,033

Denominator:
Common shares outstanding		44,642			38,707			41,058			38,699
Contingently issuable shares - vested DSUs		2			2			2			9
Weighted-average common shares outstanding—basic		44,644			38,709			41,060			38,708

Net effect of dilutive securities:
Stock options		—			—			—			63
Contingently issuable shares – nonvested DSUs		—			—			—			77
Weighted-average common shares outstanding—diluted		44,644			38,709			41,060			38,848
Net income (loss) per common share—basic	$	(0.12	)	$	0.00		$	(0.20	)	$	0.26
Net income (loss) per common share—diluted	$	(0.12	)	$	0.00		$	(0.20	)	$	0.26

- Definition

The entire disclosure for earnings per share.

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