EARNINGS PER SHARE

6 Months Ended

Oct. 31, 2024

14. EARNINGS PER SHARE

We use the two-class method of computing EPS, which is an earnings allocation formula that determines EPS for common stock and any participating securities according to dividends declared. Under the two-class method, basic earnings per share is computed by dividing the income attributable to Immersion stockholders by the weighted-average number of common stock shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur from share equivalent activity. Potential common stock, computed using the treasury stock method, includes stock options and stock awards.

The following are reconciliations of the denominators used in computing basic and diluted net income per share (in thousands):

	One Month Ended		Three Months Ended				Six Months Ended
	July 31, 2024			October 31, 2024		June 30, 2023		October 31, 2024		June 30, 2023
Numerator for basic earnings per share:
Net income attributable to Immersion stockholders	$	323	$	27,157	$	7,028	$	54,317	$	15,306

Denominator:
Weighted-average shares outstanding, basic		31,970		32,222		32,583		32,093		32,474
Shares related to outstanding options, unvested RSUs, RSAs, and PSUs		730		695		227		796		365
Weighted average shares outstanding, diluted		32,700		32,917		32,810		32,889		32,839

Net income per share attributable to Immersion stockholders
Basic	$	0.01	$	0.84	$	0.22	$	1.69	$	0.47
Diluted	$	0.01	$	0.83	$	0.21	$	1.65	$	0.47

We include PSUs in the calculation of diluted earnings per share if the applicable performance conditions have been satisfied as of the end of the reporting period and exclude stock equity awards if the performance condition has not been met.

For the month ended July 31, 2024 and the three and six months ended October 31, 2024 and June 30, 2023, we had stock options, RSUs, PSUs and RSAs outstanding that could potentially dilute basic earnings per share in the future, but these were excluded from the computation of diluted net income per share because their effect would have been anti-dilutive. These outstanding securities consisted of the following (in thousands):

	One Month Ended		Three Months Ended			Six Months Ended
	July 31, 2024			October 31, 2024	June 30, 2023		October 31, 2024	June 30, 2023
Stock options		—		—	136		—	138
RSUs, RSAs and PSUs		—		5	10		3	5
Total		—		5	146		3	143