Annual report pursuant to Section 13 and 15(d)

Net Income (Loss) Per Share

v2.4.0.6
Net Income (Loss) Per Share
12 Months Ended
Dec. 31, 2012
Net Income (Loss) Per Share

10. Net Income (Loss) Per Share

For the year ended December 31, 2010, net income per share was presented in conformity with the two-class method required for participating securities. 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 our losses.

Under the two-class method, basic net income per share attributable to common stockholders was computed by dividing the net income attributable to common stockholders by the weighted average number of common shares outstanding during the period. Net income attributable to common stockholders was determined by allocating undistributed earnings, calculated as net income 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 was 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.

For the years ended December 31, 2012 and 2011, basic net income (loss) per share was computed by dividing the net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share was 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 and restricted stock using the treasury stock method. Weighted average shares from common share equivalents in the amount of 3,180,852 shares and 2,683,398 shares were excluded from the dilutive shares outstanding because their effect was anti-dilutive for the years ended December 31, 2011 and 2010, respectively.

The following table presents the calculation of basic and diluted net income per share attributable to common stockholders:

 

     Year Ended December 31,  
     2012      2011     2010  
     (in thousands, except per share amounts)  

Numerator:

       

Net income (loss)

   $ 5,183       $ (1,231   $ 67   

8% cumulative dividends on participating preferred stock

     —           —          (2,944
  

 

 

    

 

 

   

 

 

 

Net income (loss) attributable to common stockholders — basic and diluted

   $ 5,183       $ (1,231   $ (2,877

Denominator:

       

Basic:

       

Weighted average common shares used in computing basic net income (loss) per share

     71,838         68,480        39,737   

Diluted:

       

Weighted average common shares used in computing basic net income (loss) per share

     71,838         68,480        39,737   

Add weighted average effect of dilutive securities:

       

Stock options and restricted stock

     2,164         —          —     
  

 

 

    

 

 

   

 

 

 

Weighted average common shares used in computing diluted net income (loss) per share

     74,002         68,480        39,737   

Net income (loss) per common share:

       

Basic

   $ 0.07       $ (0.02   $ (0.07

Diluted

   $ 0.07       $ (0.02   $ (0.07