Income (Loss) Per Share

9 Months Ended

Sep. 30, 2014

Earnings Per Share

Loss per Share

10.  Income (Loss) Per Share

Basic income/ (loss) per common share is determined by dividing income/ (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period, without consideration of common stock equivalents. Diluted income/ (loss) per share is computed by dividing the income/ (loss) attributable to common stockholders by the weighted-average number of common share equivalents outstanding for the period. The treasury stock method is used to determine the dilutive effect of the Company’s stock option grants, SAR, potential Employee Stock Purchase Plan (ESPP) awards and warrants, and the if-converted method (which reflects a calculated loss on debt extinguishment) is used to determine the dilutive effect of the Company’s Notes. The following common stock equivalents were excluded in the calculation of diluted loss per share because their effect would be anti-dilutive for the periods ended September 30, 2014 and 2013:

	Three Months ended September 30,		Nine Months ended September 30,
	2014	2013	2014	2013
	(unaudited)		(unaudited)
Shares underlying Convertible Senior Secured Notes	—	16,983,531	—	9,393,821
Warrants to purchase common stock	—	13,561	—	12,924
Stock options, stock appreciation rights, and non-vested stock options	—	166,531	—	159,808

The following table sets forth the computation of basic and diluted net income per share for the three and nine months ended September 30, 2014, in thousands, except share and per share amounts:

	Three Months ended			Nine Months ended
	September 30, 2014			September 30, 2014
	(unaudited)
Numerator, in thousands:
Net income used for calculation of basic EPS	$	27,858		$	15,516
Interest expense on convertible debt	1,289			3,774
Changes in fair value of derivative liabilities	(760		)	(2,115		)
Loss on extinguishment of outstanding debt, as if converted	(8,496		)	(10,497		)
Total adjustments	(7,967		)	(8,838		)
Net income used for calculation of diluted EPS	$	19,891		$	6,678
Denominator:
Weighted average shares outstanding, basic	42,900,269			42,035,025
Effect of dilutive potential common shares:
Shares underlying Convertible Senior Secured Notes and interst make-whole	7,576,541			7,995,340
Warrants to purchase common stock	20,857			20,905
Stock options, stock appreciation rights, and non-vested stock options	327,966			326,916
Total potential dilutive common shares	7,925,364			8,343,161
Weighted average shares outstanding, diluted	50,825,633			50,378,186
Net income per share, basic	$	0.65		$	0.37
Net income per share, diluted	$	0.39		$	0.13