NET (LOSS) INCOME PER COMMON SHARE

9 Months Ended

Sep. 30, 2012

NET (LOSS) INCOME PER COMMON SHARE (Tables) [Abstract]

NET (LOSS) INCOME PER COMMON SHARE [Text Block]

NOTE 10—NET (LOSS) INCOME PER COMMON SHARE

Basic net (loss) income per common share is calculated using the weighted‑average number of common shares outstanding during the period less the weighted‑average shares subject to repurchase. Diluted net (loss) income per common share gives effect to dilutive common stock subject to repurchase, stock options (calculated based on the treasury stock method), shares under the Company's ESPP and convertible debt (calculated using an as-if-converted method). Potentially dilutive securities are excluded from shares used in computing diluted net (loss) income per common share if their effect would be anti-dilutive.

The following table sets forth a reconciliation of basic and diluted net (loss) income per common share (in thousands except per common share amounts):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012		2011
Net (loss) income	$	(17,859	)	$	(9,789	)	$	1,573	$	(13,422	)
Shares used in computing basic net (loss) income per common share		70,403			69,719			70,181		70,790
Add effect of dilutive securities:
Employee stock compensation plans		-			-			103		-
Common stock subject to repurchase		-			-			326		-
Shares used in computing diluted net (loss) income per common share		70,403			69,719			70,610		70,790
Basic net (loss) income per common share	$	(0.25	)	$	(0.14	)	$	0.02	$	(0.19	)
Diluted net (loss) income per common share	$	(0.25	)	$	(0.14	)	$	0.02	$	(0.19	)

The potential dilutive securities excluded from diluted earnings per common share were as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2012		2011		2012		2011
Employee stock compensation plans		6,435		6,214		6,331		6,214
Restricted stock subject to repurchase		4,041		1,794		3,724		1,794
Convertible notes		17,985		3,169		7,214		3,169
Total		28,461		11,177		17,269		11,177