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Net Income (loss) Per Share
 3 Months Ended
Mar. 31, 2014
Net Income (loss) Per Share [Abstract]  
Net Income (loss) Per Share
Note 9. Net Income (loss) Per Share

Basic net income (loss) per share is computed using the weighted-average number of common shares outstanding during the periods less shares of common stock subject to repurchase and non-vested stock awards. Diluted net income (loss) per share is computed using the weighted-average number of common shares outstanding and potentially dilutive common shares outstanding during the periods. The dilutive effect of outstanding stock options and restricted stock awards is reflected in diluted earnings per share by application of the treasury stock method. Potentially dilutive common shares consist of common shares issuable upon the exercise of stock options. Potentially dilutive common shares are excluded in net loss periods, as their effect would be anti-dilutive.
A reconciliation of the numerators and denominators of the basic and diluted net loss per share calculations is as follows (in thousands, except per share data):
 
 
Three Months Ended
March 31,
 
 
2014
  
2013
 
Numerator:
    
Net loss attributable to AXT, Inc.
 
$
(2,040
)
 
$
(2,400
)
Less: Preferred stock dividends
  
(44
)
  
(44
)
        
Net loss available to common stockholders
 
$
(2,084
)
 
$
(2,444
)
Denominator:
        
Denominator for basic net loss per share - weighted average common shares
  
32,364
   
32,297
 
Effect of dilutive securities:
        
 Common stock options
  
—
   
—
 
Restricted stock awards
  
—
   
—
 
Denominator for dilutive net loss per common share
  
32,364
   
32,297
 
Net loss attributable to AXT, Inc. per common share:
        
Basic
 
$
(0.06
)
 
$
(0.08
)
Diluted
 
$
(0.06
)
 
$
(0.08
)
Weighted-average shares:
Options excluded from diluted net loss per share as the impact is anti-dilutive
  
2,607
   
2,656
 
Restricted stock excluded from diluted net loss per share as the impact is anti-dilutive
  
241
   
239
 


The 883,000 shares of $0.001 par value Series A preferred stock issued and outstanding as of March 31, 2014 and December 31, 2013, valued at $3,532,000, are non-voting and non-convertible preferred stock with a 5.0% cumulative annual dividend rate payable when declared by the board of directors and a $4 per share liquidation preference over common stock, which must be paid before any distribution is made to common stockholders. These preferred shares were issued to Lyte Optronics, Inc. stockholders in connection with the completion of our acquisition of Lyte Optronics, Inc. on May 28, 1999.