Earnings Per Share

3 Months Ended

Mar. 31, 2012

Earnings Per Share

8. Earnings Per Share

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per share adjusts basic earnings per share for the effects of stock options, restricted common stock, warrants and other potentially dilutive financial instruments, only in the periods in which the effects are dilutive. The accounting standard pertaining to earnings per share precludes the calculation of diluted earnings per share when a net loss is presented. The following is a reconciliation of the weighted-average shares outstanding and calculation of basic and diluted earnings per share:

	Three Months Ended March 31,
	2012		2011
	(in thousands, except for per share data)
Net income (loss) attributable to XO Group Inc.	$	397	$	(705	)
Total weighted-average basic shares		25,519		31,852
Dilutive securities:
Restricted stock		450		-
Employee Stock Purchase Plan		8		-
Options/warrants		115		-
Total weighted-average diluted shares		26,092		31,852
Net income (loss) per share:
Basic	$	0.02	$	(0.02	)
Diluted	$	0.02	$	(0.02	)

The calculation of earnings per share excludes a weighted average number of stock options and restricted stock of 162,779 and 163,776 for the three months ended March 31, 2012 and 2011, respectively, as including them in the calculation would be antidilutive because these securities were out of money. The calculation of earnings per share for the three months ended March 31, 2011 also excludes a weighted average number of stock options and restricted stock of 770,299 due to the Company’s net loss in that period.