Computation of Net Income (Loss) Per Share

9 Months Ended

Oct. 31, 2013

Earnings Per Share [Abstract]

Computation of Net Income (Loss) Per Share

3. Computation of Net Income (Loss) Per Share

Net income (loss) per share has been computed using the weighted average number of shares of common stock outstanding during each period. Diluted amounts per share include the impact of the Company’s outstanding potential common shares, such as shares issuable upon exercise of in-the-money stock options or warrants or upon conversion of convertible preferred stock, when dilutive. Potential common shares that are anti-dilutive are excluded from the calculation of diluted net income (loss) per common share. The impact of the accretion of unpaid and undeclared dividends has not been reflected in the weighted average shares used to compute diluted net income (loss) per share for the nine months ended October 31, 2012 as the convertible preferred stock was not entitled to receive undeclared dividends upon such conversion.

The following summarizes the calculation of basic and diluted net income (loss) per share:

	Three Months Ended October 31,				Nine Months Ended October 31,
	2013		2012		2013			2012
Numerator:
Net income (loss)	$	516	$	159	$	(823	)	$	1,103
Denominator:
Weighted average common shares, basic		13,341,235		13,264,018		13,318,839			6,133,987
Dilutive effect of:
Options to purchase common and preferred stock		1,351,169		1,365,658		—			1,357,992
Warrants to purchase common stock		12,118		9,588		—			51,443
Convertible preferred stock		—		—		—			4,760,301
Weighted average common shares, diluted		14,704,522		14,639,264		13,318,839			12,303,723
Basic net income (loss) per share	$	0.04	$	0.01	$	(0.06	)	$	0.18
Diluted net income (loss) per share	$	0.04	$	0.01	$	(0.06	)	$	0.09

The table above reflects options for preferred stock on an as converted to common stock basis.

The following equity instruments have been excluded from diluted net income (loss) per common share as they would be anti-dilutive:

	Three Months Ended October 31,				Nine Months Ended October 31,
	2013		2012		2013		2012
Options and warrants to purchase common and preferred stock		692,165		561,482		2,319,276		602,319