Net Loss Per Share

3 Months Ended

Apr. 30, 2011

Net Loss Per Share

(12) Net Loss Per Share—We compute basic net loss per share using the weighted average number of common shares outstanding during the period. We compute diluted net loss per share using the weighted average number of common shares and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares consist of common shares issuable upon exercise of stock options, restricted stock units, purchase rights from ESPPs, and warrants using the treasury stock method and common shares issuable upon conversion of the convertible subordinated debentures, if dilutive.

The following provides the computation of basic and diluted net loss per share:

	Three months ended April 30,
	2011			2010
Net loss	$	(2,353	)	$	(23,025	)
Weighted average common shares used to calculate basic and diluted net loss per share		111,769			103,763
Basic and diluted net loss per share	$	(0.02	)	$	(0.22	)

We excluded from the computation of diluted net loss per share stock options, restricted stock units, and ESPP purchase rights to purchase 6,959 shares of common stock for the three months ended April 30, 2011 compared to 16,938 for the three months ended April 30, 2010. The stock options, restricted stock units, and ESPP purchase rights were anti-dilutive either because we incurred a net loss for the period or the stock options were determined to be anti-dilutive as a result of applying the treasury stock method.

The effect of the conversion of the Floating Rate Convertible Subordinated Debentures (Floating Rate Debentures) due 2023 (retired during fiscal 2011), the 6.25% Debentures (retired during the three months ended April 30, 2011), and the 4.00% Debentures was anti-dilutive and therefore excluded from the computation of diluted net income (loss) per share. We assume that the 6.25% Debentures and the 4.00% Debentures will be settled in common stock for purposes of calculating the dilutive effect of the 6.25% Debentures and the 4.00% Debentures.

The conversion features of the 4.00% Debentures, which allow for settlement in cash or a combination of cash and common stock, are further described in Note 8. “Notes Payable.”