Earnings (Loss) Per Share

3 Months Ended

Mar. 31, 2020


Note 10			Income (Loss) Per Share

Basic net income (loss) per share (EPS) is computed by dividing net income (loss) attributable to RealNetworks by the weighted average number of common shares outstanding during the period. Diluted EPS is computed by dividing net income (loss) attributable to RealNetworks by the weighted average number of common and dilutive potential common shares outstanding during the period. Basic and diluted EPS (in thousands, except per share amounts):


	Quarter Ended March 31,
	2020		2019
Net income (loss) attributable to RealNetworks	$	(4,642)	$	1,533

Weighted average common shares outstanding used to compute basic EPS	38,229		37,820
Dilutive effect of stock based awards	—		92
Weighted average common shares outstanding used to compute diluted EPS	38,229		37,912

Basic EPS attributable to RealNetworks	$	(0.12)	$	0.04
Diluted EPS attributable to RealNetworks	$	(0.12)	$	0.04

During the quarters ended March 31, 2020 and 2019, 7.9 million and 6.8 million shares of common stock, respectively, of potentially issuable shares from common stock awards were excluded from the calculation of diluted EPS because of their antidilutive effect. In February 2020, Mr. Glaser invested approximately $10.0 million in RealNetworks in exchange for the issuance to him of 8,064,516 shares of Series B Preferred Stock. The Series B Preferred Stock is convertible into common stock on a one-to-one basis subject to the limitation described in Note 13 Related Party Transactions. During the quarter ended March 31, 2020, these shares were also excluded from the calculation of diluted EPS because of their antidilutive effect.