Net Loss per Common Share

3 Months Ended

Sep. 30, 2011

Net Loss per Common Share [Abstract]

Net Loss per Common Share

9.  Net Loss per Common Share

Basic loss per share is determined by dividing the loss by the weighted average common shares outstanding during the period. Diluted loss per share is determined by dividing the loss by diluted weighted average shares outstanding during the period. Diluted weighted average shares reflect the dilutive effect, if any, of potential common shares. To the extent their effect is dilutive, employee equity awards and other commitments to be settled in common stock are included in the calculation of diluted earnings (or income) per share based on the treasury stock method.

For the three months ended September 30, 2011 and 2010, all potential common shares were anti-dilutive due to the net loss. The calculations of basic and diluted loss per share and basic and diluted weighted average shares outstanding are as follows (dollars and shares in thousands, except per share data):

	Three Months Ended
	September 30,
	2011			2010
Net loss	$	(11,736	)	$	(15,468	)
Weighted average shares outstanding		94,065			92,689
Dilutive impact from:
Share-based payment awards		-			-
Warrants		-			-
Dilutive weighted average shares outstanding		94,065			92,689
Loss per share
Basic	$	(0.12	)	$	(0.17	)
Dilutive	$	(0.12	)	$	(0.17	)

Historically, we issued warrants to purchase 7,267,286 shares of common stock in connection with various financing activities. These warrants provided for net equity settlement and were accounted for in equity. Prior to fiscal 2011, 6,636,646 warrants were exercised in a cashless exercise resulting in the issuance of 4,869,539 shares of common stock. During fiscal 2011, the remaining 630,640 warrants were exercised in a cashless exercise resulting in the issuance of 424,753 shares of common stock. There were no warrants outstanding at September 30, 2011 or June 30, 2011.

The following potential common shares were excluded from the calculation of diluted weighted average shares outstanding because their inclusion would be anti-dilutive at the balance sheet date due to the net loss (shares in thousands):

	Three Months Ended
	September 30,
	2011		2010
Employee equity awards		7,013		8,246