Net Income (Loss) Per Common Share

6 Months Ended

Jun. 30, 2014

Net Income (Loss) Per Common Share

Net Income (Loss) Per Common Share

Note D — Net Income (Loss) Per Common Share

Basic net income per common share (“Basic EPS”) excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per common share (“Diluted EPS”) reflects the potential dilution that could occur if stock options or other contracts to issue common stock were exercised or converted into common stock. The computation of Diluted EPS does not assume exercise or conversion of securities that would have an anti-dilutive effect on net income per common share.  During the three and six months ended June 30, 2014, options to acquire 3,279,000 and 3,112,000 shares, respectively, were excluded from the computation of Diluted EPS as their impact was anti-dilutive. During the three and six months ended June 30, 2013, options to acquire 3,298,000 and 3,368,000 shares, respectively, were excluded from the computation of Diluted EPS as their impact was anti-dilutive.

The calculation of the weighted average number of common shares outstanding for Basic EPS and Diluted EPS for the periods indicated (in thousands, except per share data) is as follows:

	Three Months Ended June 30,					Six Months Ended June 30,
	2014			2013		2014			2013
	(Unaudited)					(Unaudited)
Numerator
Net Income (loss)	$	(14,737	)	$	20,720	$	(37,624	)	$	23,955
Denominator
Weighted average number of common shares outstanding	51,183			51,881		51,310			51,822
Effect of outstanding share-based awards	—			666		—			700
Weighted average number of shares for diluted net income per common share	51,183			52,547		51,310			52,522
Basic earnings (loss) per share	$	(0.29	)	$	0.40	$	(0.73	)	$	0.46
Diluted earnings (loss) per share	$	(0.29	)	$	0.39	$	(0.73	)	$	0.46