NET INCOME (LOSS) PER COMMON SHARE

9 Months Ended

Sep. 30, 2012

NET INCOME (LOSS) PER COMMON SHARE

NOTE 4 — NET INCOME (LOSS) PER COMMON SHARE

The computation of basic net income (loss) per common share is based on the weighted-average number of common shares outstanding during each period. The computation of diluted net income (loss) per common share is based on the weighted-average number of common shares outstanding during the period plus, when their effect is dilutive, incremental shares consisting of shares subject to stock options, shares issuable upon vesting of restricted stock units, performance share awards, stock appreciation rights, warrants and shares issuable upon conversion of convertible debt.

The Company uses the “if-converted” method in calculating the diluted net income (loss) per common share effect of the assumed conversion of the Convertible Notes because they can be settled in stock, cash or a combination thereof. Under the “if -converted” method, interest expense related to the Convertible Notes is added back to net income (loss), and the Convertible Notes are assumed to have been converted into common shares at the beginning of the period (or the issuance date) in periods in which there would be a dilutive effect.

Potentially dilutive common shares have been excluded from the diluted net loss per common share computations for all periods presented because such securities have an anti-dilutive effect on net loss per common share due to the Company’s net loss in each of the periods presented. At September 30, 2012 and 2011, these potentially dilutive securities were as follows:

	September 30,
	2012		2011
Shares issuable upon conversion of Convertible Notes		5,050		—
Stock options		6,898		10,026
Stock appreciation rights		884		—
Restricted stock units		247		305
Performance share awards eligible to be earned		42		—
Warrants		46		46
Total		13,167		10,377