Net Income Per Common Share

9 Months Ended

Jan. 31, 2022

Earnings Per Share [Abstract]

Net Income Per Common Share

Note 7 – Net Income Per Common Share

Basic net income per common share is computed by dividing our net income attributable to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted net income per common share is computed by dividing our net income 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 and PSUs, shares of common stock expected to be issued under our ESPP, Convertible Notes 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. 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 PSUs, 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 Convertible Notes and Series E Preferred Stock outstanding during the period are calculated using the if-converted method assuming the conversion of Convertible Notes and 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 per common share computations are as follows (in thousands, expect per share amounts):

	Three Months Ended January 31,					Nine Months Ended January 31,
	2022		2021			2022		2021
Numerator:
Net income	$	2,248	$	2,207		$	12,074	$	9,221
Series E preferred stock accumulated dividends		–		(1,442	)		–		(3,604	)
Net income attributable to common stockholders	$	2,248	$	765		$	12,074	$	5,617
Denominator:
Weighted average basic common shares outstanding		61,631		58,865			61,394		57,349
Effect of dilutive securities:
Stock options		1,862		937			1,926		507
RSUs, PSUs and ESPP		379		295			391		202
Weighted average dilutive common shares outstanding		63,872		60,097			63,711		58,058
Net income per share attributable to common stockholders
Basic	$	0.04	$	0.01		$	0.20	$	0.10
Diluted	$	0.04	$	0.01		$	0.19	$	0.10

The following table presents the potential dilutive securities excluded from the calculation of diluted net income per share for the periods presented as the effect of their inclusion would have been anti-dilutive (in thousands):

	Three Months Ended January 31,				Nine Months Ended January 31,
	2022		2021		2022		2021
Stock options		40		325		37		1,665
RSUs, PSUs and ESPP		3		–		5		6
Convertible Notes		6,776		–		6,776		–
Series E Preferred Stock		–		1,979		–		1,979
Total		6,819		2,304		6,818		3,650