Net Loss per Share

9 Months Ended

Sep. 30, 2017

3. Net Loss per Share

Basic earnings per share, or EPS, is calculated by dividing the net income or loss available to common stockholders by the weighted average number of common shares outstanding for the period, without consideration for common stock equivalents. Diluted EPS is computed by dividing the net income or loss available to common stockholders by the weighted average number of common shares outstanding for the period and the weighted average number of dilutive common stock equivalents outstanding for the period determined using the treasury-stock method or the if-converted method.

For purposes of this calculation, options, warrants and shares underlying convertible notes are considered to be common stock equivalents and are only included in the calculation of diluted earnings per share when their effect is dilutive.

(In thousands, except per share amounts)

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Numerator:
Net income (loss) - basic	$	(20,829	)	$	47,663		$	(120,434	)	$	85
Change in fair value of financial instruments	$	—		$	(6,700	)	$	—		$	—
Net income (loss) - diluted	$	(20,829	)	$	40,963		$	(120,434	)	$	85

Denominator for basic and diluted weighted average shares of common stock outstanding:

Weighted average common shares outstanding for basic		15,440			14,587			15,164			14,570
Dilutive potential common stock outstanding:
Stock options and Employee Stock Purchase Plan (ESPP)		—			28			—			—
Common stock warrants		—			—			—			—
Convertible senior notes		—			22,000			—			—
Weighted average common shares outstanding for diluted		15,440			36,615			15,164			14,570
Basic net income (loss) per share	$	(1.35	)	$	3.27		$	(7.94	)	$	0.01
Diluted net income (loss) per share	$	(1.35	)	$	1.12		$	(7.94	)	$	0.01

Historical outstanding anti-dilutive securities not included in the diluted net loss per share calculation include the following (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Shares underlying 2013 convertible senior notes		370		1,404		370		1,404
Shares underlying 2016 convertible senior secured notes		22,000		—		22,000		22,000
Shares underlying 2017 exchange notes		2,696		—		2,696		—
Common stock warrants outstanding		22,500		22,500		22,500		22,500
Common stock options and PSU's outstanding		8,344		6,584		8,344		6,584
		55,910		30,488		55,910		52,488