Income (loss) per share

9 Months Ended

Sep. 30, 2011

8.	Income (loss) per share

	Three months ended				Nine months ended
	September 30,				September 30,
	2011		2010		2011		2010
	(in thousands, except per share amounts)

Net income (loss) attributable to Innodata Isogen, Inc and Subsidiaries	$	1,376	$	313	$	2,198	$	(1,965	)

Weighted average common shares outstanding		24,707		25,400		24,932		25,400
Dilutive effect of outstanding options		397		182		209		—
Adjusted for dilution computation		25,104		25,582		25,141		25,400

Basic income (loss) per share is computed using the weighted-average number of common shares outstanding during the period. Diluted income (loss) per share is computed by considering the impact of the potential issuance of common shares, using the treasury stock method, on the weighted average number of shares outstanding. For those securities that are not convertible into a class of common stock, the “two class” method of computing income (loss) per share is used.

Options to purchase 1.2 million shares of common stock and 1.3 million shares of common stock for the three months ended September 30, 2011 and 2010, respectively, were outstanding but not included in the computation of diluted income (loss) per share because the options’ exercise price was greater than the average market price of the common shares and, therefore, the effect would have been antidilutive.

Options to purchase 1.3 million shares of common stock and 0.3 million shares of common stock for the nine months ended September 30, 2011 and 2010, respectively, were outstanding but not included in the computation of diluted income (loss) per share because the options’ exercise price was greater than the average market price of the common shares and, therefore, the effect would have been antidilutive. In addition, diluted net loss per share does not include 1.9 million potential common shares derived from the exercise of stock options and for the nine months ended September 30, 2010 because as a result of the Company incurring losses, their effect would have been antidilutive. All options outstanding were included in the computation of diluted income (loss) per share for the nine months ended September 30, 2011, as the exercise price was lower than the average market price.