NET INCOME (LOSS) PER COMMON SHARE

9 Months Ended

Sep. 30, 2013

NET INCOME (LOSS) PER COMMON SHARE

NET INCOME (LOSS) PER COMMON SHARE

NOTE 3.  NET INCOME (LOSS) PER COMMON SHARE

Basic net income (loss) per common share is calculated by dividing the net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is calculated by dividing the net income by the weighted-average number of shares of common stock outstanding during the period, plus dilutive common shares for the period determined using the treasury stock method. Diluted net loss per share is calculated by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period. For purposes of this calculation, options to purchase stock are considered to be potential common shares and are only included in the calculation of diluted net income (loss) per share when their effect is dilutive. Basic and diluted earnings per common share are calculated as follows:

	Three Months Ended September 30,					Nine Months Ended September 30,
(in thousands, except for per share amounts)	2013		2012			2013		2012
Numerator:
Net income (loss)	$	6,514	$	(1,495	)	$	1,512	$	(26,077	)
Denominator for basic net income (loss) per share	56,819		56,039			56,615		55,794
Net effect of dilutive common stock equivalents	842		—			701		—
Denominator for diluted net income (loss) per share:	57,661		56,039			57,317		55,794
Basic net income (loss) per share	$	0.11	$	(0.03	)	$	0.03	$	(0.47	)
Diluted net income (loss) per share	$	0.11	$	(0.03	)	$	0.03	$	(0.47	)

For the three and nine months ended September 30, 2013, the total number of antidilutive outstanding common stock equivalents excluded from the net income per common share computation were 4.9 million and 5.1 million, respectively. For the three and nine months ended September 30, 2012, 6.0 million common stock equivalents were not included in dilutive shares because their effect is antidilutive.