Net Income Per Common Share

9 Months Ended

Jan. 31, 2023

Net income per share:

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 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 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, and Convertible Notes.

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 is calculated using the if-converted method assuming the conversion of our Convertible Notes 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, except per share amounts):

	Three Months Ended January 31,				Nine Months Ended January 31,
	2023		2022		2023		2022
Numerator
Net income	$	461	$	2,248	$	869	$	12,074
Denominator
Weighted average basic common shares outstanding		62,388		61,631		62,166		61,394
Effect of dilutive securities:
Stock options		1,129		1,862		1,239		1,926
RSUs, PSUs and ESPP		209		379		229		391
Weighted average dilutive common shares outstanding		63,726		63,872		63,634		63,711
Net income per share:
Basic	$	0.01	$	0.04	$	0.01	$	0.20
Diluted	$	0.01	$	0.04	$	0.01	$	0.19

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,
	2023		2022		2023		2022
Stock options		45		40		49		37
RSUs and PSUs		807		3		695		5
Convertible Notes		6,776		6,776		6,776		6,776
Total		7,628		6,819		7,520		6,818