7. Net Income (Loss) per Common Share

9 Months Ended

Jan. 31, 2021

Earnings Per Share [Abstract]

Net Income (Loss) per Common Share

Note 7 – Net Income (Loss) Per Common Share

Basic net income (loss) per common share is computed by dividing our net income (loss) attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per common share is computed by dividing our net income (loss) attributable to common stockholders by the sum of the weighted average number of shares of common stock outstanding during the period plus the potential dilutive effects of stock options, unvested RSUs, shares of common stock expected to be issued under our ESPP, and Series E Preferred Stock outstanding during the period.

Net income attributable to common stockholders represents our net income less Series E Preferred Stock accumulated dividends. Net loss attributable to common stockholders represents our net loss plus Series E Preferred Stock accumulated dividends. Series E Preferred Stock accumulated dividends include dividends declared for the period (regardless of whether or not the dividends have been paid) and dividends accumulated for the period (regardless of whether or not the dividends have been declared).

The potential dilutive effect of stock options, unvested RSUs, and shares of common stock expected to be issued under our ESPP during the period are calculated in accordance with the treasury stock method but are excluded if their effect is anti-dilutive. The potential dilutive effect of our Series E Preferred Stock outstanding during the period is calculated using the if-converted method assuming the conversion of Series E Preferred Stock as of the earliest period reported or at the date of issuance, if later, but are excluded if their effect is anti-dilutive. A reconciliation of the numerators and the denominators of the basic and dilutive net income (loss) per common share computations for the three and nine months ended January 31, 2021 and 2020, are as follows (in thousands, expect per share amounts):

	Three Months Ended January 31,						Nine Months Ended January 31,
	2021			2020			2021			2020
Numerator
Net income (loss)	$	2,207		$	(2,104	)	$	9,221		$	(5,698	)
Series E preferred stock accumulated dividends		(1,442	)		(1,442	)		(3,604	)		(3,604	)
Net income (loss) attributable to common stockholders	$	765		$	(3,546	)	$	5,617		$	(9,302	)
Denominator
Weighted average common shares outstanding, basic		58,865			56,404			57,349			56,275
Effect of dilutive securities:
Stock options		937			–			507			–
RSUs		279			–			188			–
ESPP		16			–			14			–
Weighted average common shares outstanding, dilutive		60,097			56,404			58,058			56,275
Net income (loss) per share, basic	$	0.01		$	(0.06	)	$	0.10		$	(0.17	)
Net income (loss) per share, diluted	$	0.01		$	(0.06	)	$	0.10		$	(0.17	)

The following table presents the securities excluded from the calculation of diluted net income (loss) per share for the three and nine months ended January 31, 2021 and 2020, as the effect of their inclusion would have been anti-dilutive (in thousands):

	Three Months Ended January 31,				Nine Months Ended January 31,
	2021		2020		2021		2020
Stock options		325		2,106		1,665		2,721
RSUs		–		–		4		8
ESPP		–		–		2		–
Series E Preferred Stock		1,979		1,979		1,979		1,979
Total		2,304		4,085		3,650		4,708