Computation of Net (Loss) Income Per Common Share

3 Months Ended

Jun. 30, 2013

Computation of Net (Loss) Income Per Common Share

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

Basic net loss per share (“EPS”) is computed by dividing net loss by the weighted-average number of common shares outstanding for the period. Where applicable, diluted EPS is computed by dividing the net loss 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, 2013, 6.1 million shares were not included in the calculation of diluted EPS as they were considered anti-dilutive, of which 2.9 million relate to unvested stock options and 3.2 million relate to the issuance of warrants. For the three months ended June 30, 2012, 6.3 million shares were not included in the calculation of diluted EPS as they were considered anti-dilutive, of which 3.1 million relate to unvested stock options and 3.2 million relate to the issue of warrants.

The following table reconciles the numerators and denominators of the earnings per share calculation for the three months ended June 30, 2013 and 2012 (in thousands, except per share data):


	Three months ended June 30,
	2013			2012

Numerator:
Net loss	$	(10,513	)	$	(10,275	)

Denominator:
Weighted-average shares of common stock outstanding		60,463			51,997
Weighted-average shares subject to repurchase		(2,163	)		(806	)

Shares used in per-share calculation — basic		58,300			51,191
Shares used in per-share calculation — diluted		58,300			51,191

Net loss per share — basic	$	(0.18	)	$	(0.20	)

Net loss per share — diluted	$	(0.18	)	$	(0.20	)

- Definition

The entire disclosure for earnings per share.

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