Note 15 - Net Income (Loss) Per Share

12 Months Ended

Dec. 31, 2011

Earnings Per Share [Text Block]

Note 15.     Net Income (Loss) Per Share

Basic net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share gives effect to all potentially dilutive common shares outstanding during the period, which include certain stock–based awards, calculated using the treasury stock method, and convertible notes which are potentially dilutive at certain earnings levels, and are computed using the if-converted method. As disclosed in Note 1, all share information has been adjusted to reflect the Reverse/Forward Split.

A reconciliation of the numerator and denominator of the basic and diluted income (loss) per share computations for continuing operations, discontinued operations and net income (loss) for all periods presented is as follows:

				Nine-Month
	Fiscal Year			Transition			Fiscal Year
	Ended			Period Ended			Ended
	December 31,			December 31,			March 31,
	2011			2010			2010
	(in thousands, except per share amounts)
Numerators (basic and diluted):
Income (loss) from continuing operations, net of taxes	$	(218	)	$	(17,386	)	$	(17,232	)
Income (loss) from discontinued opertions, net of taxes	$	6,915		$	(373	)	$	(202	)
Net income (loss)	$	6,769		$	(17,759	)	$	(17,434	)
Denominators:
Weighted average shares outstanding - basic		10,882			11,609			11,920
Effect of common stock equivalents (if any):
Stock-based awards		15			-			-
3/4% notes		-			-			-
Weighted average shares outstanding - diluted		10,897			11,609			11,920
Income (loss) per share:
Basic
Income (loss) from continuing operations, net of taxes	$	(0.02	)	$	(1.50	)	$	(1.45	)
Income (loss) from discontinued opertions, net of taxes	$	0.64		$	(0.03	)	$	(0.02	)
Net income (loss)	$	0.62		$	(1.53	)	$	(1.46	)
Diluted
Income (loss) from continuing operations, net of taxes	$	(0.02	)	$	(1.50	)	$	(1.45	)
Income (loss) from discontinued opertions, net of taxes	$	0.63		$	(0.03	)	$	(0.02	)
Net income (loss)	$	0.62		$	(1.53	)	$	(1.46	)

Diluted loss per share for the Transition Period and fiscal 2010 was based on the basic weighted average shares outstanding only, as the inclusion of any common stock equivalents would have been anti-dilutive. For the Loss from continuing operations, net of taxes, for fiscal 2011, the basic weighted average shares outstanding was also used, as the inclusion of any common stock equivalents would have been anti-dilutive. The potential common shares excluded for each of the periods presented are as follows:

			Nine-Month
	Fiscal Year		Transition		Fiscal Year
	Ended		Period Ended		Ended
	December 31,		December 31,		March 31,
	2011		2010		2010
	(in thousands)
Outstanding stock options		-		297		556
Outstanding restricted stock		20		43		230
3/4% convertible senior subordinated notes due 2023		3		3		3
Warrants(1)		-		-		17

(1) In August 2004, the Company entered into an agreement to sell external storage products to IBM. In connection with this agreement, the Company issued IBM a warrant to purchase 25,000 shares of the Company’s common stock at an exercise price of $69.40 per share. This warrant expired without being exercised in August 2009. In connection with the IBM internet protocol Series RAID acquisition in June 2004, the Company issued IBM a warrant to purchase 25,000 shares of the Company’s common stock at a purchase price of $81.30 per share. This warrant expired without being exercised in June 2009.