Net Income (Loss) Per Common Share

6 Months Ended

Dec. 31, 2021

Note 12. Net Income (loss) Per Common Share

The Company reports both basic and diluted income (loss) per share, which is based on the weighted average number of common shares outstanding during the period.

A reconciliation of the numerator and denominator used in the calculation of basic and diluted net income (loss) per common share follows (in thousands):


	Three Months Ended December 31,				Six Months Ended December 31,
	2021		2020		2021			2020
Numerator:
Net income (loss)	$	179	$	4,769	$	(849	)	$	5,171
Denominator:
Weighted average shares outstanding - basic		91,761		92,025		91,299			91,609
Dilutive effect of potential common shares		2,171		1,328		—			998
Weighted average shares outstanding - diluted		93,932		93,353		91,299			92,607
Basic net income (loss) per share	$	0.00	$	0.05	$	(0.01	)	$	0.06
Diluted net income (loss) per share	$	0.00	$	0.05	$	(0.01	)	$	0.06

The potentially dilutive shares of the Company’s common stock resulting from the assumed exercise of outstanding stock options, the vesting of Restricted Stock Units (RSU), Market Stock Units (MSU) and Performance Stock Units (PSU), and the purchase of shares under the Employee Stock Purchase Program (ESPP), as determined under the treasury stock method, are excluded from the computation of diluted net income (loss) per share when their effect would have been anti‑dilutive. Additionally, the outstanding 3.75% Convertible Notes due July 2022 (the “3.75% Convertible Notes due 2022”) and the 3.75% Convertible Notes due June 2026 (the “3.75% Convertible Notes due 2026” and together with the 3.75% Convertible Notes due 2022, the “Notes”) are included in the calculation of diluted net income per share only if their inclusion is dilutive for periods during which the notes were outstanding.

The following table sets forth all potentially dilutive securities excluded from the computation in the table above because their effect would have been anti-dilutive (in thousands):


	As of December 31,
	2021		2020
Stock options		6,334		6,939
RSUs, PSUs and MSUs		4,452		3,174
		10,786		10,113

3.75% Convertible Notes—Diluted Share Impact

Due to the optional cash settlement feature and management’s intent to settle the principal amount thereof in cash, the shares of common stock issuable upon conversion of the outstanding principal amount of the 3.75% Convertible Notes due 2022 and 3.75% Convertible Notes due 2026 outstanding as of December 31, 2021, totaling approximately 0.5 million shares and 17.1 million shares of the Company’s common stock, respectively, as of December 31, 2021, the effect of adding the shares were antidilutive and were not included in the basic and diluted net income (loss) per common share table above. The shares of common stock issuable upon conversion of the outstanding principal amount of the 3.75% Convertible Notes due 2022 outstanding as of December 31, 2020 totaled approximately 14.9 million shares of the Company’s common stock and the effect of adding the shares were antidilutive and were not included in the basic and diluted net income (loss) per common share table above.