Quarterly report pursuant to Section 13 or 15(d)

Net Income (Loss) Per Share

 v2.3.0.11
Net Income (Loss) Per Share
6 Months Ended
Jun. 30, 2011
Net Income (Loss) Per Share [Abstract]  
Net Income (Loss) Per Share
9. Net Income (Loss) Per Share
Net income (loss) per share is presented in conformity with the two-class method required for participating securities. In August 2010, all of the Company’s outstanding redeemable convertible preferred stock converted into common stock in connection with our IPO. Prior to the conversion, holders of Series A Preferred, Series A1 Preferred, Series B Preferred and Series C Preferred were each entitled to receive 8% per annum cumulative dividends, payable prior and in preference to any dividends on any other shares of our capital stock. In the event a dividend was paid on common stock, holders of Series A Preferred, Series A1 Preferred, Series B Preferred, Series C Preferred and non-vested restricted stock were entitled to a proportionate share of any such dividend as if they were holders of common shares (on an as-if converted basis). Holders of Series A Preferred, Series A1 Preferred, Series B Preferred, Series C Preferred and non-vested restricted stock did not share in loss of the Company.
For the period prior to the conversion of the redeemable convertible preferred stock, net loss per share information is computed using the two-class method. Under the two-class method, basic net income per share attributable to common stockholders is computed by dividing the net income attributable to common stockholders by the weighted average number of common shares outstanding during the period. Net loss attributable to common stockholders is determined by allocating undistributed earnings, calculated as net loss less current period Series A Preferred, Series A1 Preferred, Series B Preferred and Series C Preferred cumulative dividends, between the holders of common stock and Series A Preferred, Series A1 Preferred, Series B Preferred and Series C Preferred. Diluted net income per share attributable to common stockholders is computed by using the weighted average number of common shares outstanding, including potential dilutive shares of common stock assuming the dilutive effect of outstanding stock options using the treasury stock method. Weighted average shares from common share equivalents in the amount of 1,486,406 shares and 3,541,946 shares and 897,668 shares were excluded from the dilutive shares outstanding because their effect was anti-dilutive for the three months ended June 30, 2010 and the six months ended June 30, 2011 and 2010, respectively.
The following table presents the calculation of basic and diluted net income (loss) per share attributable to common stockholders:
                                 
    Three Months Ended     Six Months Ended  
    June 30,     June 30,  
    2011     2010     2011     2010  
    (in thousands, except per share amounts)  
Numerator:
                               
Net income (loss)
  $ 282     $ 164     $ (366 )   $ (39 )
8% cumulative dividends on participating preferred stock
          (971 )           (2,324 )
 
                       
Net income (loss) attributable to common stockholders — basic and diluted
  $ 282     $ (807 )   $ (366 )   $ (2,363 )
Denominator:
                               
Basic:
                               
Weighted average common shares used in computing basic net income (loss) per share
    68,673       26,042       67,741       25,901  
Diluted:
                               
Weighted average common shares used in computing basic net income (loss) per share
    68,673       26,042       67,741       25,901  
Add weighted average effect of dilutive securities:
                               
Stock options
    3,339                    
Restricted stock
                       
 
                       
Weighted average common shares used in computing diluted net income (loss) per share
    72,012       26,042       67,741       25,901  
Net income (loss) per common share:
                               
Basic
  $ 0.00     $ (0.03 )   $ (0.01 )   $ (0.09 )
Diluted
  $ 0.00     $ (0.03 )   $ (0.01 )   $ (0.09 )