Net Income (Loss) Per Common Share

9 Months Ended

Mar. 31, 2022

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 March 31,						Nine Months Ended March 31,
	2022			2021			2022			2021
Numerator:
Net income (loss)	$	(1,046	)	$	(390	)	$	(1,895	)	$	4,781
Denominator:
Weighted average shares outstanding - basic		92,761			93,123			91,780			92,106
Dilutive effect of potential common shares		—			—			—			1,316
Weighted average shares outstanding - diluted		92,761			93,123			91,780			93,422
Basic net income (loss) per share	$	(0.01	)	$	(0.00	)	$	(0.02	)	$	0.05
Diluted net income (loss) per share	$	(0.01	)	$	(0.00	)	$	(0.02	)	$	0.05

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 March 31,
	2022		2021
Stock options		6,317		6,742
RSUs, PSUs and MSUs		4,422		3,076
		10,739		9,818

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 March 31, 2022, totaling approximately 0.5 million shares and 17.1 million shares of the Company’s common stock, respectively, as of March 31, 2022, 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 March 31, 2021 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.