Income (Loss) per Share

9 Months Ended

Sep. 30, 2011

Note 10 — Income (Loss) per Share

Basic earnings per share (EPS) are computed by dividing net income (loss) attributable to RigNet common stockholders by the number of basic shares outstanding. Basic shares equal the total of the common shares outstanding, weighted for the average days outstanding for the period. Basic shares exclude the dilutive effect of common shares that could potentially be issued due to the conversion of preferred stock, exercise of stock options, exercise of warrants or satisfaction of necessary conditions for contingently issuable shares. Diluted EPS is computed by dividing net income (loss) attributable to RigNet common stockholders by the number of diluted shares outstanding. Diluted shares equal the total of the basic shares outstanding and all potentially issuable shares, weighted for the average days outstanding for the period. The Company uses the treasury stock method to determine the dilutive effect.

The following table provides a reconciliation of the numerators and denominators of the basic and diluted per share computations for net income (loss) attributable to RigNet, Inc. common stockholders:


	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2011		2010			2011		2010
	(in thousands)
Net income (loss) attributable to RigNet, Inc. stockholders	$	5,451	$	433		$	7,546	$	(10,813	)
Less: Dividends accrued on preferred stock		—		273			—		813
Less: Derivatives related to preferred stock dividends (See Note 8 — Fair Value Measurements)		—		637			—		1,617
Less: Adjustment to redeemable, non-controlling interest redemption value		—		75			—		50

Net income (loss) attributable to RigNet, Inc. common stockholders	$	5,451	$	(552	)	$	7,546	$	(13,293	)

Weighted average shares outstanding, basic		15,443		5,319			15,369		5,318
Effect of dilutive securities		1,397		—			1,423		—

Weighted average shares outstanding, diluted		16,840		5,319			16,792		5,318

Dilutive securities outstanding during the three and nine months ended September 30, 2011 included stock options and warrants. All equivalent units were anti-dilutive for the three and nine months ended September 30, 2010, which included preferred stock, stock options and warrants. Anti-dilutive share equivalents excluded from the earnings per share computations for the three and nine months ended September 30, 2010 totaled 5.2 million and 4.8 million, respectively.