Net (Loss) Income Per Common Share

3 Months Ended

Mar. 31, 2013

Earnings Per Share [Abstract]

Net (Loss) Income Per Common Share

NOTE 4 — NET (LOSS) INCOME PER COMMON SHARE

The computation of basic net (loss) income per common share is based on the weighted-average number of common shares outstanding during each period. The computation of diluted net (loss) income 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, restricted stock units, performance share awards, stock appreciation rights, warrants and shares issuable upon conversion of convertible debt.

In periods where the Company reported a net loss, all common stock equivalents and convertible securities are deemed anti-dilutive such that basic net loss per common share and diluted net loss per common share are equal.

In periods in which the Company has net income, it uses the “if-converted” method in calculating the diluted net income 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, 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. For the three months ended March 31, 2012, the impact of the Convertible Notes has been excluded from the calculation of diluted net income per common share because the effect of their inclusion would be anti-dilutive.

The following table reconciles the denominator used to calculate diluted net (loss) income per common share:

	Three Months Ended March 31,
	2013			2012
Numerator:
Net (loss) income	$	(27,170	)	$	440
Denominator:
Weighted-average common shares, basic		74,824			71,907
Dilutive effect of common stock equivalents		—			5,392
Weighted-average common shares, diluted		74,824			77,299
	Three Months Ended March 31,
	2013			2012
Net (loss) income per common share—basic	$	(0.36	)	$	0.01
Net (loss) income per common share—diluted	$	(0.36	)	$	0.01

Potentially dilutive common shares have been excluded from the diluted net loss per common share computation for the three months ended March 31, 2013 because such securities have an anti-dilutive effect on net loss per common share due to the Company’s net loss during that period. Outstanding securities, and the number of potentially dilutive common shares underlying such securities, were as follows at March 31, 2013:

	March 31,
	2013
Stock options		6,898
Convertible Notes		5,050
Stock appreciation rights (1)		427
Restricted stock units		383
Warrants		46
Total		12,804

⁽¹⁾  Consists of 426,951 shares to be issued upon the exercise of 874,092 outstanding stock appreciation rights, computed using the spread between the March 28, 2013 closing price of the Company’s common stock and the underlying exercise price of the stock appreciation rights.