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, 2011
Net Income (Loss) Per Share [Abstract]  
Net Income (Loss) Per Share
10. Net Income (Loss) Per Share
Net income (loss) per share is 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 are 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 is paid on common stock, holders of Series A Preferred, Series A1 Preferred, Series B Preferred, Series C Preferred and non-vested restricted stock are 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 do not share in loss of the Company.
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 income attributable to common stockholders is 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 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 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,  
    2011     2010     2009  
    (in thousands, except per share amounts)  
Numerator:
                       
Net (loss) income
  $ (1,231 )   $ 67     $ 28,429  
8% cumulative dividends on participating preferred stock
          (2,944 )     (5,521 )
Undistributed earnings allocated to participating preferred and restricted stock
                (12,297 )
 
                 
Net (loss) income attributable to common stockholders — basic and diluted
  $ (1,231 )   $ (2,877 )   $ 10,611  
Denominator:
                       
Basic:
                       
Weighted average common shares used in computing basic net (loss) income per share
    68,480       39,737       23,934  
Diluted:
                       
Weighted average common shares used in computing basic net (loss) income per share
    68,480       39,737       23,934  
Add weighted average effect of dilutive securities:
                       
Stock options
                1,531  
 
                       
Stock warrants
                46  
 
                 
Weighted average common shares used in computing diluted net (loss) income per share
    68,480       39,737       25,511  
Net (loss) income per common share:
                       
Basic
  $ (0.02 )   $ (0.07 )   $ 0.44  
Diluted
  $ (0.02 )   $ (0.07 )   $ 0.42