Income (Loss) Per Common Share

Basic income (loss) per common share amounts are calculated using the weighted-average number of common shares outstanding for the period. Diluted income (loss) per common share amounts are calculated using the weighted-average number of common shares outstanding for the period and include the dilutive impact of preferred stock using the if-converted method and exercise of stock options and warrants as well as assumed lapse of restrictions on restricted stock awards and shares currently available for purchase under the Company's Employee Stock Purchase Plan, using the treasury stock method.

The two-class method is used to calculate basic and diluted income (loss) per common share since the Company's preferred and restricted stock are participating securities under ASC 260 Earnings per share. The two-class method is an earnings allocation formula that determines income per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. Under the two-class method, basic income (loss) per common share is computed by dividing net income (loss) attributable to common shares after allocation of income to participating securities by the weighted-average number of common shares outstanding during the year. Diluted income (loss) per common share is computed using the more dilutive of the two-class method or the if-converted method. In periods of net loss, no effect is given to participating securities since they do not contractually participate in the losses of the Company. The two-class method is the more dilutive method for fiscal 2013, fiscal 2012 and fiscal 2011.

The following table reconciles net income (loss) and the weighted average common shares outstanding used in the computations of basic and diluted income (loss) per common share (in thousands, except for share and per share data):



	Fiscal Year
	2013			2012			2011
Numerator:
Net income	$	32,142		$	20,025		$	16,078
Dividend paid to preferred shareholders	—			(62,504		)	—
Dividend paid to unvested restricted shareholders	—			(2,899		)	—
Series A 8% Convertible Preferred Stock cumulative dividends	—			—			(15,913		)
Net income attributable to participating securities	(465		)	—			(109		)
Net income (loss) attributable to common shareholders	$	31,677		$	(45,378	)	$	56
Denominator:
Weighted average common shares outstanding - basic	53,294,805			35,444,200			15,903,599
Dilutive impact of options, warrants and employee stock purchase plan	447,055			—			509
Weighted average common shares outstanding - diluted	53,741,860			35,444,200			15,904,108
Per common share:
Basic income (loss) per common share	$	0.59		$	(1.28	)	$	—
Diluted income (loss) per common share	$	0.59		$	(1.28	)	$	—

For fiscal 2013 and fiscal 2011, $0.5 million and $0.1 million, respectively, of net income was attributable to participating securities, as the two-class method was more dilutive, and the remainder was attributable to common shareholders. For fiscal 2012, as the Company was in a net loss position after recognition of the payment of dividends, the net losses were solely attributable to common shareholders.

For fiscal 2011 preferred stock that could be converted to 30,894,593 shares of common stock were not included in the computation of diluted income per share, as the effect of doing so would have been anti-dilutive. The preferred stock was converted to common stock on July 24, 2012 and was included in the computation of income (loss) per share during fiscal 2012 on a weighted average basis.

The effects of the assumed exercise of stock options for 388,197 shares of common stock for fiscal 2013 were excluded from the calculation of diluted net income per share as their impact would have been anti-dilutive.

The effects of the assumed exercise of the combined stock options and warrants and vesting of restricted share awards of 2,573,490 for fiscal 2012, and the impact of shares to be issued under the Company's Employee Stock Purchase Plan, which is minor, were excluded from the calculation of diluted net loss as the effect would be anti-dilutive due to a net loss to common shareholders. The effects of the assumed exercise of stock options and warrants for 2,781,138 shares of common stock for fiscal 2011 were excluded from the calculation of diluted net income per share as the average market price of the related common stock for the periods exceeded the exercise price of the options or warrants or the assumed proceeds determined under the treasury stock method resulted in no incremental shares for stock options.

The aforementioned excluded shares do not reflect the impact of any incremental repurchases under the treasury stock method.