EARNINGS PER SHARE

6 Months Ended

May 31, 2013

EARNINGS PER SHARE

EARNINGS PER SHARE

NOTE 6– EARNINGS PER SHARE

Earnings per share are computed using weighted average common shares and dilutive common equivalent shares outstanding.  Potentially dilutive securities consist of outstanding options, restricted stock and unvested RSUs.  A reconciliation of the numerator and denominator of basic earnings per share and diluted earnings per share is as follows:

	Three months ended				Six months ended
	(in thousands, except per share data)				(in thousands, except per share data)
	May 31, 2013		May 31, 2012		May 31, 2013			May 31, 2012
Basic earnings (loss) per share computation:
Numerator:
Net income (loss) and comprehensive (loss) income	$	1,173	$	1,418	$	(5,215	)	$	2,212
Denominator:
Weighted average common shares outstanding	67,047		65,234		66,849			65,139
Income (loss) per common share - basic
Net (loss) income and comprehensive (loss) income	$	0.02	$	0.02	$	(0.08	)	$	0.03
Diluted earnings (loss) per share computation:
Numerator:
Net income (loss) and comprehensive (loss) income	$	1,173	$	1,418	$	(5,215	)	$	2,212
Denominator:
Weighted average common shares outstanding	67,047		65,234		66,849			65,139
Effect of dilutive securities:
Restricted shares, RSU’s and options	1,364		1,225		—			697
Dilutive potential common shares	68,411		66,459		66,849			65,836
Income (loss) per common share - dilutive
Net income (loss) and comprehensive (loss) income	$	0.02	$	0.02	$	(0.08	)	$	0.03

For the three months ended May 31, 2013 and 2012, currently exercisable options, unvested restricted shares and unvested RSUs in the aggregate of 450,000 and 767,179, respectively, have been excluded from the calculation of the diluted loss per share as their effect would have been anti-dilutive.

For the six months ended May 31, 2013, currently exercisable options, unvested restricted shares and unvested RSUs in the aggregate of 4,164,822 have been excluded from the calculation of the diluted loss per share as their effect would have been anti-dilutive.

For the six months ended May 31, 2012, currently exercisable options, unvested restricted shares and unvested RSUs in the aggregate of 3,006,979 have been excluded from the calculation of the diluted loss per share as their effect would have been anti-dilutive.

Shares Reserved for Future Issuance

As of May 31, 2013, shares reserved for future issuance include (i) 775,000 shares of common stock issuable upon the exercise of stock options granted under the incentive plans; (ii) 2,435,000 shares of common stock issuable upon the vesting of RSUs; and (iii) an aggregate of 3,416,942 shares of common stock available for future issuance under the Amended and Restated 2004 Stock Incentive Plan.