4. Computation of Net (Loss) Income per Common Share

Basic net (loss) income per share ("EPS") is computed by dividing net (loss) income by the weighted-average number of common shares outstanding for the period. Where applicable, diluted EPS is computed by dividing the net (loss) income by the weighted-average number of common shares and dilutive common equivalent shares outstanding during the period, calculated using the treasury stock method. Common equivalent shares include the effect of restricted stock, exercise of stock options and warrants and contingently issuable shares. For the three months ended June 30, 2011 and 2010, common equivalent shares of 3.0 million shares and 1.4 million shares, respectively, were not included in the calculation of diluted EPS as they were considered anti-dilutive.

The following table reconciles the numerators and denominators of the earnings per share calculation for the three months ended June 30, 2011 and 2010 (in thousands, except per share data):


		Three months ended June 30,
		2011	2010

Numerator:

	Net (loss) income	$ (37,679)	$ 9,170

Denominator:
	Weighted-average shares of common stock outstanding	51,172	45,454
	Weighted-average shares subject to repurchase	(463)	(212)

Shares used in per-share calculation — basic		50,709	45,242

	Dilutive effect of employee equity incentive plans	-	741

Shares used in per-share calculation — diluted		50,709	45,983

Net (loss) income per share — basic		$ (0.74)	$ 0.20

Net (loss) income per share — diluted		$ (0.74)	$ 0.20