Earnings Per Share

9 Months Ended

Sep. 30, 2011

Note 14. Earnings Per Share

For periods beginning August 2007 through the quarter ended March 31, 2010, basic net income (loss) available to common shareholders per share is computed by dividing net income (loss) attributable to common shareholders adjusted for the impact of MTVN’s preferred return in Rhapsody by the weighted average number of common shares outstanding during the period. Diluted net income (loss) available to common shareholders per share is computed by dividing net income (loss) attributable to common shareholders adjusted for the impact of MTVN’s preferred return in Rhapsody by the weighted average number of common and dilutive potential common shares outstanding during the period. Basic and diluted net income (loss) per share available to common shareholders are calculated as follows (in thousands):


	Quarters Ended September 30,					Nine Months Ended September 30,
	2011			2010		2011			2010
Net income (loss) available to common shareholders:
Net income (loss) attributable to common shareholders	$	(5,182	)	$	24,523	$	(24,336	)	$	1,844
Less termination of MTVN’s preferred return in Rhapsody		0			0		0			3,700

Net income (loss) available to common shareholders	$	(5,182	)	$	24,523	$	(24,336	)	$	5,544

Shares used to compute diluted net income (loss) per share available to common shareholders:
Weighted average common shares outstanding used to compute basic net income (loss) per share available to common shareholders		34,199			33,905		34,081			33,826
Dilutive stock options and restricted stock		0			537		0			732

Shares used to compute diluted net income (loss) per share available to common shareholders		34,199			34,442		34,081			34,558

Basic net income (loss) per share available to common shareholders	$	(0.15	)	$	0.72	$	(0.71	)	$	0.16
Diluted net income (loss) per share available to common shareholders	$	(0.15	)	$	0.71	$	(0.71	)	$	0.16

During the quarter and nine months ended September 30, 2011, 5.9 million and 6.0 million shares of common stock, respectively, potentially issuable from stock options were excluded from the calculation of diluted net income per share because of their antidilutive effect. During the quarter and nine months ended September 30, 2010, 5.1 million and 4.3 million shares of common stock, respectively, potentially issuable from stock options were excluded from the calculation of diluted net income per share because of their antidilutive effect.