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Earnings (Loss) Per Share
6 Months Ended
Jun. 30, 2014
Earnings Per Share [Abstract]  
Earnings (Loss) Per Share
Earnings (Loss) Per Share
Basic earnings (loss) per share is calculated by dividing the net income (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated by dividing the earnings by the weighted average number of common shares and potentially dilutive securities outstanding during the period. Potentially dilutive common shares consist of incremental common shares issuable upon exercise of stock options, employee stock purchases, restricted stock and restricted stock units and shares issuable upon the conversion of convertible notes. The dilutive effect of outstanding shares is reflected in diluted earnings per share by application of the treasury stock method. This method includes consideration of the amounts to be paid by the employees, the amount of excess tax benefits that would be recognized in equity if the instrument was exercised and the amount of unrecognized stock-based compensation related to future services. No potential dilutive common shares are included in the computation of any diluted per share amount when a net loss is reported.
The following table sets forth the computation of basic and diluted net income (loss) per share:
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2014
 
2013
 
2014
 
2013
Net income (loss) per share:
 
(In thousands, except per share amounts)
Numerator:
 
 

 
 

 
 
 
 
Net income (loss)
 
$
5,043

 
$
(7,844
)
 
$
12,847

 
$
(18,246
)
Denominator:
 
 
 
 
 
 
 
 
Weighted-average shares outstanding - basic
 
114,116

 
112,183

 
113,854

 
111,892

Effect of potential dilutive common shares
 
3,282

 

 
2,879

 

Weighted-average shares outstanding - diluted
 
117,398

 
112,183

 
116,733

 
111,892

Basic net income (loss) per share
 
$
0.04

 
$
(0.07
)
 
$
0.11

 
$
(0.16
)
Diluted net income (loss) per share
 
$
0.04

 
$
(0.07
)
 
$
0.11

 
$
(0.16
)
For the three months ended June 30, 2014 and 2013, options to purchase approximately 3.7 million and 10.9 million shares, respectively, and for the six months ended June 30, 2014 and 2013, options to purchase approximately 6.2 million and 11.2 million shares, respectively, were excluded from the calculation because they were anti-dilutive after considering proceeds from exercise, taxes and related unrecognized stock-based compensation expense. For the three months ended June 30, 2013, an additional 4.0 million potentially dilutive shares, and for the six months ended June 30, 2013, an additional 4.1 million potentially dilutive shares have been excluded from the weighted average dilutive shares because there were net losses for the periods.