Quarterly report pursuant to Section 13 or 15(d)

Net Loss Per Share

v2.3.0.15
Net Loss Per Share
9 Months Ended
Sep. 30, 2011
Net Loss Per Share [Abstract]  
Net Loss Per Share
9. Net Loss Per Share
Net 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 the 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 8,521 shares and 3,476,622 shares and 239,804 shares and 2,036,796 shares were excluded from the dilutive shares outstanding because their effect was anti-dilutive for the three and nine months ended September 30, 2011 and 2010, respectively.
The following table presents the calculation of basic and diluted net loss per share attributable to common stockholders:
                                 
    Three Months Ended     Nine Months Ended  
    September 30,     September 30,  
    2011     2010     2011     2010  
    (in thousands, except per share amounts)  
Numerator:
                               
Net (loss) income
  $ (1,106 )   $ 292     $ (1,472 )   $ 253  
8% cumulative dividends on participating preferred stock
          (619 )           (2,944 )
 
                       
Net loss attributable to common stockholders — basic and diluted
  $ (1,106 )   $ (327 )   $ (1,472 )   $ (2,691 )
Denominator:
                               
Basic:
                               
Weighted average common shares used in computing basic net loss per share
    68,792       43,636       68,096       31,878  
Diluted:
                               
Weighted average common shares used in computing basic net loss per share
    68,792       43,636       68,096       31,878  
Add weighted average effect of dilutive securities:
                               
Stock options
                       
Restricted stock
                       
 
                       
Weighted average common shares used in computing diluted net loss per share
    68,792       43,636       68,096       31,878  
Net loss per common share:
                               
Basic
  $ (0.02 )   $ (0.01 )   $ (0.02 )   $ (0.08 )
Diluted
  $ (0.02 )   $ (0.01 )   $ (0.02 )   $ (0.08 )