Income (loss) per share

6 Months Ended

Jun. 30, 2011

Income (loss) per share

8. Income (loss) per share

	Three months ended					Six months ended
	June 30,					June 30,
	2011		2010			2011		2010
	(in thousands, except per share amounts)
Net income (loss) attributable to
Innodata Isogen, Inc and Subsidiaries	$	807	$	(874	)	$	822	$	(2,278	)
Weighted average common shares outstanding		25,059		25,419			25,107		25,400
Dilutive effect of outstanding options		249		—			155		—
Adjusted for dilution computation		25,308		25,419			25,262		25,400

Basic income (loss) per share is computed using the weighted-average number of common shares outstanding during the period. Diluted income (loss) per share is computed by considering the impact of the potential issuance of common shares, using the treasury stock method, on the weighted average number of shares outstanding.

Options to purchase 2.9 million shares of common stock and 1.0 million shares of common stock for the three months ended June 30, 2011 and 2010, respectively, were outstanding but not included in the computation of diluted income (loss) per share because the options’ exercise price was greater than the average market price of the common shares and, therefore, the effect would have been antidilutive. In addition, diluted net income (loss) per share does not include 1.0 million potential common shares derived from the exercise of stock options for the three months ended June 30, 2010 because as a result of the Company’s incurring losses, their effect would have been antidilutive.

Options to purchase 1.2 million shares of common stock and 0.2 million shares of common stock for the six months ended June 30, 2011 and 2010, respectively, were outstanding but not included in the computation of diluted income (loss) per share because the options’ exercise price was greater than the average market price of the common shares and, therefore, the effect would have been antidilutive. In addition, diluted net income (loss) per share does not include 1.8 million potential common shares derived from the exercise of stock options for the six months ended June 30, 2010 because as a result of the Company incurring losses, their effect would have been antidilutive.