Note 9 - Earnings Per Common Share

6 Months Ended

Jun. 30, 2014

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

NOTE 9 — EARNINGS PER SHARE

Basic net income per common share is based upon the weighted average number of common shares outstanding during the period. Diluted net income per common share is based upon the weighted average number of common shares outstanding, including the dilutive effect, if any, of potentially dilutive securities using the treasury stock method.

The Company’s potentially dilutive securities consist of: (i) vested and unvested stock options that are in-the-money, (ii) warrants that are in-the-money, (iii) unvested restricted stock awards (“RSAs”), and (iv) shares issuable on conversion of convertible notes.  Information about the computation of basic and diluted earnings per share is detailed below (in thousands, except per share data): 

	Three Months Ended June 30,					Six Months Ended June 30,
	2014			2013		2014			2013
Income from continuing operations	$	9,009		$	12,637	$	18,837		$	23,479
Income from continuing operations per share:
Basic	$	0.09		$	0.13	$	0.19		$	0.24
Diluted	$	0.08		$	0.11	$	0.16		$	0.21
(Loss) from discontinued operations, net of tax	$	(503	)	─		$	(503	)	─
(Loss) from discontinued operations per share
Basic	$	(0.01	)	─		$	(0.01	)	─
Diluted	$	(0.01	)	─		$	(0.01	)	─
Shares used in computing net income (loss) per share:
Weighted average basic shares outstanding		103,183			96,122		99,926			96,025
Dilutive securities:
Stock option and unvested RSAs		5,038			4,380		5,008			4,383
Stock warrants		749			6,614		3,779			6,564
Shares issuable upon conversion of convertible notes (1)		9,122			5,212		8,863			5,038
Total dilutive securities		14,909			16,206		17,650			15,985
Weighted average diluted shares outstanding		118,092			112,328		117,576			112,010
Shares subject to stock options omitted from the calculation of income per share as their effect would have been anti-dilutive		598			1,373		336			1,289

(1)   The number of shares issuable upon conversion of the Notes is based on the assumption that the Company would repay the principal of the Notes in cash and pay any incremental value in shares of common stock.

Stock Warrant Exercise

On April 10, 2014, the Company’s chairman, John N. Kapoor, Ph.D., exercised all of his 7.2 million outstanding stock warrants for cash.  These warrants were issued at various dates in 2009 and were scheduled to expire in 2014.  The Company received cash proceeds of approximately $8.2 million from the warrant exercise during the three and six month periods ended June 30, 2014.