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Note 9 - Earnings Per Share
 9 Months Ended
Sep. 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
September 30,
   
Nine Months Ended
September 30,
 
   
2014 (1)
   
2013
   
2014
   
2013
 
Income (loss) from continuing operations
  $
(11,650
)   $ 12,205     $
7,187
    $ 35,684  
Income (loss) from continuing operations per share:
                               
Basic
  $ (0.11 )   $ 0.13     $ 0.07     $ 0.37  
Diluted
  $ (0.11 )   $ 0.11     $ 0.06     $ 0.32  
(Loss) from discontinued operations, net of tax
    ─       ─     $ (503 )     ─  
(Loss) from discontinued operations per share:
                               
Basic
    ─       ─      
─
      ─  
Diluted
    ─       ─      
─
      ─  
 
                               
Shares used in computing net income (loss) per share:
                               
Weighted average basic shares outstanding
    105,438       96,238       101,784       96,096  
Dilutive securities:
                               
Stock option and unvested RSAs
   
─
      4,510      
4,748
      4,408  
Stock warrants
    ─       6,687       2,505       6,635  
Shares issuable upon conversion of convertible notes (2)
   
─
      6,282       9,498       5,505  
Total dilutive securities
   
─
      17,479      
16,751
      16,548  
                                 
Weighted average diluted shares outstanding
   
105,438
      113,717      
118,535
      112,644  
                                 
Shares subject to stock options omitted from the calculation of income per share as their effect would have been anti-dilutive
   
─
      1,110       740       1,335  

 
(1)
As a result of the loss from continuing operations in the three months ended September 30, 2014, the effect of potentially dilutive securities would be anti-dilutive and have been omitted from the calculation of diluted earnings per share consistent with U.S. GAAP.

 
(2)
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 nine month period ended September 30, 2014.