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Earnings per Share
12 Months Ended
Sep. 30, 2018
Earnings Per Share [Abstract]  
Earnings per Share
Earnings per Share

Basic net income (loss) per share has historically been calculated by dividing net income (loss) attributable to common stock by the weighted average number of common shares outstanding for the period. Our Series A Preferred Stock is considered a participating security because, in the event that we pay a dividend or make a distribution on the outstanding common stock, we shall also pay each holder of the Series A Preferred Stock a dividend on an as-converted basis. As such, for periods subsequent to the issuance of the Series A Preferred Stock, we calculated basic earnings per share pursuant to the two-class method. The two-class method is an earnings allocation formula that determines earnings per share for common stock and participating securities according to dividend and participation rights in undistributed earnings. Under this method, all earnings, distributed and undistributed, are allocated to common shares and participating securities based on their respective rights to receive dividends. The Series A Preferred Stock is not included in the computation of basic earnings (loss) per share in periods in which we have a net loss, as the Series A Preferred Stock is not contractually obligated to share in our net losses. The two-class method was not applicable for the years ended September 30, 2018, 2017 and 2016.

Diluted earnings (loss) per share is calculated using the more dilutive of the as-converted or the two-class method. The two-class method assumes conversion of all potential shares other than the participating securities. Dilutive potential common shares include outstanding stock options, unvested restricted share awards and units and convertible preferred stock. For the years ended September 30, 2018, 2017 and 2016, diluted loss per share equaled basic loss per share as the assumed activity related to outstanding stock-based grants would have an anti-dilutive effect.
The following table summarizes the computation of basic and diluted earnings (loss) per share under the as-converted method:

 
Year Ended September 30,
 
 
2018
 
2017
 
2016
 
 
(In thousands)
Loss available for distribution
 
$
(37,932
)
 
$
(13,378
)
 
$
(49,120
)
 
 
 
 
 
 
 
Weighted average number of shares
 
 
 
 
 
 
Basic shares outstanding
 
25,115

 
24,712

 
24,313

Dilutive effect related to employee stock plans
 

 

 

Diluted shares outstanding
 
25,115

 
24,712

 
24,313

 
 
 
 
 
 
 
Net loss per share - basic
 
$
(1.51
)
 
$
(0.54
)
 
$
(2.02
)
Net loss per share - diluted
 
$
(1.51
)
 
$
(0.54
)
 
$
(2.02
)


The following table summarizes the potential weighted average shares of common stock that were excluded from the determination of our diluted shares outstanding as they were anti-dilutive:

 
 
Year Ended September 30,
 
 
2018
 
2017
 
2016
 
 
(In thousands)
Outstanding stock-based grants
 
334

 
689

 
816

Convertible preferred stock
 
21,021

 
21,021

 
5,629

 
 
21,355

 
21,710

 
6,445