Net Income (Loss) Per Common Share

3 Months Ended

Jul. 31, 2023

Net income (loss) per share:

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) 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) 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, unvested PSUs, shares of common stock expected to be issued under our ESPP, and Convertible Notes.

The potential dilutive effect of stock options, unvested RSUs, unvested 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 (loss) per common share computations are as follows (in thousands, except per share amounts):

	Three Months Ended July 31,
	2023			2022
Numerator:
Net income (loss)	$	(2,093	)	$	1,564
Denominator:
Weighted average basic common shares outstanding		62,838			61,905
Effect of dilutive securities:
Stock options		–			1,195
RSUs and ESPP		–			233
Weighted average dilutive common shares outstanding		62,838			63,333
Net income (loss) per share:
Basic	$	(0.03	)	$	0.03
Diluted	$	(0.03	)	$	0.02

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

	Three Months Ended July 31,
	2023		2022
Stock options		1,138		55
RSUs, PSUs and ESPP		907		466
Convertible Notes		6,776		6,776
Total		8,821		7,297