|
2. Net Income (Loss) per Share
Basic net income (loss) per share for each period presented was computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding, less RSAs subject to forfeiture.
For the nine months ended September 30, 2012, diluted net income per share was computed by dividing net income plus interest on dilutive convertible subordinated notes by the weighted-average number of shares of common stock outstanding during the period, less RSAs subject to forfeiture, plus all additional common shares that would have been outstanding assuming dilutive potential common shares had been issued for dilutive convertible notes (see Note 6) and other dilutive securities.
Dilutive potential common shares were calculated based on the “if-converted” method. Under the “if-converted” method, when computing the dilutive effect of convertible notes, net income was adjusted to add back the amount of interest and debt issuance costs recognized in the period and the denominator was adjusted to add back the number of shares that would be issued if the entire obligation was settled in shares.
Dilutive potential common shares also include the dilutive effect of the common stock underlying in-the-money stock options and ESPP shares, and were calculated based on the average share price for each period using the treasury stock method. Under the treasury stock method, the exercise price of an option and the average amount of compensation cost, if any, for future service that the Company has not yet recognized when the option is exercised, are assumed to be used to repurchase shares in the current period. Dilutive potential common shares also reflect the dilutive effect of unvested restricted stock units.
For the three months ended September 30, 2012, and for the three and nine months ended September 30, 2011, diluted net loss per share was identical to basic net loss per share since potential common shares were excluded from the calculation, as their effect was anti-dilutive.
The computations for basic and diluted net income (loss) per share were as follows:
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
|
(in thousands, except for per share amounts) |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
|
Numerator: |
|
|
|
|
|
|
|
|
|
|
Net income (loss) — basic |
|
$ |
(34,692 |
) |
$ |
(30,626 |
) |
$ |
12,782 |
|
$ |
(78,337 |
) |
|
Add: interest and issuance costs related to convertible notes |
|
— |
|
— |
|
4,503 |
|
— |
|
|
Net income (loss) — diluted |
|
$ |
(34,692 |
) |
$ |
(30,626 |
) |
$ |
17,285 |
|
$ |
(78,337 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Denominator: |
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding |
|
97,590 |
|
84,951 |
|
91,834 |
|
84,238 |
|
|
Less: unvested RSAs |
|
(2,563 |
) |
(2,461 |
) |
(2,563 |
) |
(2,461 |
) |
|
Weighted-average common shares outstanding — basic |
|
95,027 |
|
82,490 |
|
89,271 |
|
81,777 |
|
|
Effect of dilutive equity incentive plans and ESPP |
|
— |
|
— |
|
2,442 |
|
— |
|
|
Effect of dilutive convertible subordinated notes |
|
— |
|
— |
|
6,668 |
|
— |
|
|
Weighted-average common shares outstanding —diluted |
|
95,027 |
|
82,490 |
|
98,381 |
|
81,777 |
|
Anti-Dilutive Securities
Common equivalent shares not included in the computation of diluted net income (loss) per share because their effect was anti-dilutive were as follows:
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
|
|
(in thousands) |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
|
Shares issuable under Equity Incentive Plans and ESPP |
|
5,098 |
|
6,744 |
|
2,915 |
|
6,205 |
|
|
Shares issuable upon the conversion of convertible subordinated notes |
|
6,668 |
|
6,668 |
|
— |
|
6,668 |
|
|
Total anti-dilutive securities |
|
11,766 |
|
13,412 |
|
2,915 |
|
12,873 |
|
|