Net Income Per Common Share

12 Months Ended

Apr. 30, 2023

Net income per share attributable to common stockholders:

Net Income Per Common Share

Note 8 – 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 and the impact of Series E Preferred Stock redemption.

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 our 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, except per share amounts): 

	Fiscal Year Ended April 30,
	2023		2022		2021
Numerator
Net income	$	560	$	127,672	$	11,212
Series E preferred stock accumulated dividends		–		–		(4,455	)
Impact of Series E preferred stock redemption		–		–		(3,439	)
Net income attributable to common stockholders, basic	$	560	$	127,672	$	3,318
Add interest expense on Convertible Notes, net of tax		–		1,954		–
Net income attributable to common stockholders, diluted	$	560	$	129,626	$	3,318
Denominator
Weighted average basic common shares outstanding		62,268		61,484		58,222
Effect of dilutive securities:
Stock options		1,248		1,830		909
RSUs, PSUs and ESPP		266		384		295
Convertible Notes		–		6,776		–
Weighted average dilutive common shares outstanding		63,782		70,474		59,426
Net income per share attributable to common stockholders:
Basic	$	0.01	$	2.08	$	0.06
Diluted	$	0.01	$	1.84	$	0.06

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

	Fiscal Year Ended April 30,
	2023		2022		2021
Stock options		46		43		829
RSUs, PSUs and ESPP		253		9		–
Convertible Notes		6,776		–		928
Series E Preferred Stock		–		–		1,864
Total		7,075		52		3,621