Net Loss Per Common Share

9 Months Ended

Jun. 30, 2011

Net Loss Per Common Share [Abstract]

Net Loss Per Common Share

Note 7. Net Loss Per Common Share

Basic (loss) income per common share is computed based on the weighted average number of common shares outstanding by dividing net (loss) income applicable to common shareholders by the weighted average number of common shares outstanding for the period. Generally, diluted net income per common share reflects the potential dilution that could occur if securities or other obligations to issue common stock such as options, restricted stock units, warrants or convertible preferred stock, were exercised or converted into common stock that then shared in the earnings of the Company. However, diluted net loss per common share is equal to basic net loss per common share for the three months ended June 30, 2011 and the nine months ended June 30, 2011 and 2010 because the effect of including such securities or obligations would have been antidilutive Net (loss) income per common share is based on weighted average shares outstanding as summarized in the following table:

	Three months ended					Nine Months Ended
	2011			2010		2011			2010
Numerator:
Net (loss) income to common shareholders	$	(468	)	$	551	$	(1,370	)	$	(3,270	)
Denominator:
Weighted average common shares — basic		10,667			9,718		10,427			9,170
Effect of preferred stock		—			16,316		—			—
Effect of dilutive options, RSUs, RSAs,		—			325		—			—
Weighted average common shares — diluted		10,667			26,359		10,427			9,170
Basic (loss) earnings per share	$	(0.04	)	$	0.06	$	(0.13	)	$	(0.36	)
Diluted (loss) earnings per share	$	(0.04	)	$	0.02	$	(0.13	)	$	(0.36	)

Potentially dilutive securities representing approximately 16.4 million shares of common stock outstanding for the three months ended June 30, 2011 were excluded from the computation of diluted earnings per share because their effect would have been antidilutive. In addition, approximately 16.4 million and 11.4 million shares of common stock outstanding for the nine months ended June 30, 2011 and 2010, respectively, were excluded from the computation of diluted earnings per share because their effect would have been antidilutive.