Basic and Diluted Net Income (Loss) Per Share

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements

Basic and Diluted Net Income (Loss) Per Share

Note 2 - Basic and Diluted Net Income (Loss) Per Share

Basic net income (loss) per share is computed using the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed using the weighted average number of shares of common stock outstanding during the period increased to include the number of additional shares of common stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding stock options and shares to be purchased under the employee stock purchase plan. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per common share by application of the treasury stock method. Under the treasury stock method, an increase in the fair market value of our common stock can result in a greater dilutive effect from potentially dilutive securities.

The computations of basic and diluted net income (loss) per share are as follows (in thousands, except per share amounts):

	Three Months Ended March 31,						Nine Months Ended March 31,
	2012			2011			2012		2011
Numerator:
Net income (loss)	$	(12,823	)	$	(9,217	)	$	28,892	$	(24,239	)
Denominator:
Weighted average common shares-basic		68,848			59,931			68,610		59,641
Effect of dilutive securities:
Employee stock options		-			-			3,491		-
Employee stock purchase plan		-			-			73		-
Weighted average common shares - diluted		68,848			59,931			72,174		59,641
Net income (loss) per share:
Basic	$	(0.19	)	$	(0.15	)	$	0.42	$	(0.41	)
Diluted	$	(0.19	)	$	(0.15	)	$	0.40	$	(0.41	)
Potentially dilutive securities excluded from earnings (loss) per share - diluted because their effect is anti-dilutive		7,907			8,583			857		8,407