Net (Loss) Income Per Share

3 Months Ended

Oct. 31, 2013

Net (Loss) Income Per Share

14. Net (Loss) Income Per Share

Basic net (loss) income per share is computed using the weighted average number of common shares outstanding during the period. Diluted net (loss) income per share is computed using the sum of the weighted average number of common shares outstanding during the period and, if dilutive, the weighted average number of potential shares of common stock, including unvested restricted stock and the assumed exercise of stock options using the treasury stock method. Options to purchase common shares with exercise prices that exceeded the market value of the underlying common stock are excluded from the computation of diluted earnings per share. Application of the treasury stock method could be antidilutive to unvested restricted shares if due to unrecognized compensation and windfall tax profits the hypothetical repurchase of shares exceeds the number of restricted shares to be exercised.

Basic and diluted net (loss) income per share are calculated as follows:

	For the Three Months Ended
	October 31
(in millions)	2013			2012
Net (loss) income	$	(3.8	)	$	4.4
Weighted average number of common shares outstanding-basic (000’s)		12,443			12,323
Effect of dilutive securities:
Stock options and restricted stock units		-			259
Weighted average number of common shares outstanding-diluted (000’s)		12,443			12,582
Basic net (loss) income per share:	$	(0.30	)	$	0.36
Diluted net (loss) income per share:	$	(0.30	)	$	0.35

For the three months ended October 31, 2013 and 2012, approximately 546,000 and 29,000 potentially dilutive shares, respectively, were excluded from the computation of diluted earnings per share as the effect would be anti-dilutive.