(11) EARNINGS PER SHARE

The Company calculates earnings per share in accordance with ASC Topic 260, “Earnings per Share.” The Company adopted ASC Topic 260-10, formerly FASB Staff Position EITF No. 03-6-1, “Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities” effective August 1, 2009. Under ASC Topic 260-10, unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and shall be included in the computation of earnings per share pursuant to the two-class method. All of the Company’s nonvested shares are considered participating securities because they contain non-forfeitable rights to dividends. However, holders of nonvested shares do not have an obligation to fund losses, and therefore, are only allocated a portion of the earnings for the earnings per share calculation when the Company reports net income.

Under the two-class method, net income is reduced by the amount of dividends declared in the period for each class of common stock and participating securities. The remaining undistributed earnings are then allocated to common stock and participating securities as if all of the net income for the period had been distributed. Basic earnings per share excludes dilution and is calculated by dividing net income allocable to common shares by the weighted average number of common shares outstanding for the period. Diluted earnings per share is calculated by dividing net income allocable to common shares by the weighted-average number of common shares for the period, as adjusted for the potential dilutive effect of non-participating share-based awards. The following table reconciles earnings per share for the three and nine months ended April 30, 2012 and 2011.


	Three Months Ended April 30,						Nine Months Ended April 30,
	2012			2011 (As Restated)			2012			2011 (As Restated)
	(In thousands)
BASIC
Income (loss) from continuing operations	$	(6,038	)	$	1,569		$	(18,441	)	$	(29,774	)
Income (loss) from discontinued operations		(98	)		(91	)		572			(239	)

Net income (loss)	$	(6,136	)	$	1,478		$	(17,869	)	$	(30,013	)
Less net income allocable to participating restricted stock		—			(17	)		—			—

Net income (loss) available for basic common shares	$	(6,136	)	$	1,461		$	(17,869	)	$	(30,013	)

Weighted average common shares outstanding		43,844			43,303			43,546			43,289

Basic net income (loss) per common share from continuing operations	$	(0.14	)	$	0.03		$	(0.42	)	$	(0.68	)
Basic net income (loss) per common share from discontinued operations		—			—			0.01			(0.01	)

Basic net income (loss) per common share	$	(0.14	)	$	0.03		$	(0.41	)	$	(0.69	)

DILUTED
Income (loss) from continuing operations	$	(6,038	)	$	1,569		$	(18,441	)	$	(29,774	)
Income (loss) from discontinued operations		(98	)		(91	)		572			(239	)

Net income (loss)	$	(6,136	)	$	1,478		$	(17,869	)	$	(30,013	)
Less net income allocable to participating restricted stock		—			(17	)		—			—

Net income (loss) available for diluted common shares	$	(6,136	)	$	1,461		$	(17,869	)	$	(30,013	)

Weighted average common shares outstanding		43,844			43,303			43,546			43,289
Weighted average common equivalent shares arising from: dilutive stock options		—			199			—			—

Weighted-average number of common and potential common shares		43,844			43,502			43,546			43,289

Diluted net loss per common share from continuing operations	$	(0.14	)	$	0.03		$	(0.42	)	$	(0.68	)
Diluted net income (loss) per common share from discontinued operations		—			—			0.01			(0.01	)

Diluted net income (loss) per common share	$	(0.14	)	$	0.03		$	(0.41	)	$	(0.69	)

For the three and nine months ended April 30, 2012, approximately 2.6 million and 3.3 million, respectively, common stock equivalent shares were excluded from the denominator in the calculation of diluted earnings per share as their inclusion would have been antidilutive.

For the three and nine months ended April 30, 2011, approximately 2.6 million and 2.4 million, respectively, common stock equivalent shares were excluded from the denominator in the calculation of diluted earnings per share as their inclusion would have been antidilutive.