Net Income (Loss) Per Common Share

12 Months Ended

Dec. 31, 2012

Net Income (Loss) Per Common Share

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.

In periods in which the Company has net income, it 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 the years ended December 31, 2012, 2011, and 2010 because such securities have an anti-dilutive effect on net loss per common share due to the Company’s net loss in each of these years. Outstanding securities, and the number of potentially dilutive common shares underlying such securities, were as follows:

	December 31,
	2012		2011		2010
Stock options		7,038		8,604		10,083
Convertible Notes		5,050		—		—
Stock appreciation rights		884		525		—
Restricted stock units		374		203		346
Performance shares		—		125		—
Warrants		46		46		46
Total		13,392		9,503		10,475