4. Net Income (Loss) Per Common Share

Basic net income (loss) per common share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per common share is calculated by giving effect to all potentially dilutive common shares, including stock options and awards, unless the result is anti-dilutive. The following tables set forth the computation of net income (loss) per share:


	Three months ended		Nine months ended
	April 30, 2011		April 30, 2011
	(in thousands, except per share data)

Net income	$	3,201	$	2,503


Weighted-average common shares outstanding-basic		102,055		98,962
Dilutive effect of employee stock plans		17,312		17,327


Weighted-average common shares outstanding-diluted		119,367		116,289

Net income per share-basic	$	0.03	$	0.03


Net income per share-diluted	$	0.03	$	0.02


	Three months ended			Nine months ended
	April 30, 2010			April 30, 2010
	(in thousands, except per share data)

Net loss	$	(5,318	)	$	(34,420	)


Weighted-average common shares outstanding net of weighted-average common shares subject to repurchase		90,874			88,978

Net loss per share-basic and diluted	$	(0.06	)	$	(0.39	)

The following outstanding stock options and restricted stock awards were excluded from the computation of diluted net income (loss) per common share for the periods presented because including them would have had an anti-dilutive effect.


	Three months ended April 30,				Nine months ended April 30,
	2011		2010		2011		2010
	(in thousands)				(in thousands)
Options to purchase common stock		1,672		4,010		1,250		5,302
Restricted stock awards		82		170		268		165