Net Income (Loss) Per Share

12 Months Ended

Sep. 30, 2011

Net Income (Loss) Per Share

Net Income (Loss) Per Share

Note 12—Net Income (Loss) Per Share

The following table presents the calculation of basic and diluted net income (loss) per share (in thousands, except per share data):

	Year Ended September 30,
	2011			2010		2009
(Loss) income from continuing operations	$	(2,983	)	$	13,225	$	1,656
Discontinued operations, net of tax		36,240			3,161		6,537
Net income	$	33,257		$	16,386	$	8,193
Weighted-average common shares—basic		91,212			86,617		82,733
Add: Effect of dilutive securities		—			2,604		2,691
Weighted-average common shares—diluted		91,212			89,221		85,424
(Loss) income from continuing operations	$	(0.03	)	$	0.15	$	0.02
Discontinued operations, net of tax		0.39			0.04		0.08
Net income per common share—basic	$	0.36		$	0.19	$	0.10
(Loss) income from continuing operations	$	(0.03	)	$	0.15	$	0.02
Discontinued operations, net of tax		0.39			0.03		0.08
Net income per common share—diluted	$	0.36		$	0.18	$	0.10

Diluted income per share is computed by dividing income by the weighted-average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding options, shares to be purchased under the employee stock purchase plan and unvested restricted common stock. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per common share by application of the treasury share method. For the year ended September 30, 2011, the Company excluded approximately 3.6 million of potentially dilutive shares because their effect was anti-dilutive due to the loss from continuing operations recognized in this period.

The Company has concluded that the unvested restricted common stock subject to performance milestones will only be included in basic earnings per share when the underlying shares are issuable to the respective employees. However, if all necessary conditions have not been satisfied by the end of the reporting period, the number of the unvested restricted common stock included in diluted earnings per share shall be based on the number of shares, if any, that would be issuable if the end of the reporting period were the end of the contingency period and if the result would be dilutive.