Earnings (Loss) Per Share

9 Months Ended

Sep. 30, 2013

Earnings (Loss) Per Share

(11) Earnings (Loss) Per Share

Basic earnings (loss) per share is computed by dividing the net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings (loss) per share is computed using the weighted-average number of shares of common stock outstanding during the period and, when dilutive, potential common shares outstanding during the period. Potential common shares consist of incremental shares issuable upon the assumed exercise of stock options, preferred stock and warrants. Diluted earnings (loss) per share is the same as basic earnings (loss) per share for the three and nine months ended September 30, 2012 because the effects of potentially dilutive items were anti-dilutive given the Company’s net loss in each of those periods.

The following table presents the calculation of earnings (loss) per share (in thousands, except per share data):

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2013		2012			2013		2012
	(unaudited)
Basic earnings (loss) per share:
Numerator:
Net income (loss)	$	1,164	$	(2,275	)	$	5,175	$	(4,381	)
Denominator:
Weighted-average common shares		33,880		5,056			28,686		5,042
Basic earnings (loss) per share	$	0.03	$	(0.45	)	$	0.18	$	(0.87	)
Diluted earnings (loss) per share:
Numerator:
Net income (loss)	$	1,164	$	(2,275	)	$	5,175	$	(4,381	)
Denominator:
Weighted-average common shares		33,880		5,056			28,686		5,042
Weighted-average shares from convertible preferred stock		—		—			3,535		—
Effect of dilutive securities		4,308		—			4,217		—
Weighted-average common shares and equivalents		38,188		5,056			36,438		5,042
Diluted earnings (loss) per share	$	0.03	$	(0.45	)	$	0.14	$	(0.87	)

The following securities have been excluded from the calculation of diluted net earnings (loss) per share of common stock for the periods presented because including them would have been anti-dilutive (in thousands):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2013		2012		2013		2012
	(unaudited)
Common shares from convertible preferred stock		—		21,444		—		21,444
Common shares from common stock warrants		—		36		—		36
Stock options outstanding		11		6,688		27		6,688
Total common stock equivalents		11		28,168		27		28,168