EARNINGS PER COMMON SHARE

6 Months Ended

Jun. 30, 2011

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE

NOTE J - EARNINGS PER COMMON SHARE

Basic net income (loss) per common share is based upon the weighted average common shares outstanding during the period. Diluted net income (loss) per common share is based upon the weighted average number of common shares outstanding, including the dilutive effect, if any, of stock options, warrants and the conversion feature of convertible notes using the treasury stock method. However, for the three and six-month periods ended June 30, 2010, the assumed exercise of any of these securities would have been anti-dilutive.  Accordingly, the diluted loss per share equals the basic loss per share for these periods.

Certain shares that are potentially dilutive in the future have been excluded from the diluted net income (loss) per share computation as they would have been anti-dilutive for the period.  The number of such shares subject to warrants as of June 30, 2011 and June 30, 2010 was zero and 8,701,000, respectively.  The number of such shares subject to options as of June 30, 2011 and June 30, 2010 was 1,032,000 and 7,938,000, respectively.  The number of shares subject to the conversion of the Notes at the initial conversion price of $8.76 per share was 13,699,000 as of June 30, 2011.

The Company's potentially dilutive shares consist of: (i) vested and unvested stock options that are in-the-money, (ii) warrants that are in-the-money, and (iii) unvested RSAs.  A reconciliation of the earnings per share data from a basic to a fully diluted basis is detailed below:

	THREE MONTHS ENDED					SIX MONTHS ENDED
	JUNE 30,					JUNE 30,
	2011		2010			2011		2010
Net income (loss)	$	17,946	$	(9,433	)	$	23,756	$	(5,913	)
Net income (loss) per share:
Basic	$	0.19	$	(0.10	)	$	0.25	$	(0.06	)
Diluted	$	0.17	$	(0.10	)	$	0.23	$	(0.06	)
Shares used in computing net income (loss) per share:
Weighted average basic shares outstanding		94,579		92,745			94,389		91,764
Dilutive securities:
Stock option and unvested RSAs		4,707		-			4,434		-
Stock warrants		5,947		-			5,830		-
Total dilutive securities		10,654		-			10,264		-
Weighted average diluted shares outstanding		105,233		92,745			104,653		91,764