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Earnings (Loss) Per Share Attributable to Comverse Technology, Inc.'s Shareholders
 9 Months Ended
Oct. 31, 2012
Earnings Per Share [Abstract]  
Earnings (Loss) Per Share Attributable to Comverse Technology, Inc.'s Shareholders
ARNINGS (LOSS) PER SHARE ATTRIBUTABLE TO COMVERSE TECHNOLOGY, INC.’S SHAREHOLDERS
Basic loss per share attributable to Comverse Technology, Inc.’s shareholders is computed using the weighted average number of shares of common stock outstanding. For purposes of computing diluted earnings (loss) per share attributable to Comverse Technology, Inc.’s shareholders, shares issuable upon exercise of stock options and deliverable in settlement of unvested DSU and RSU awards are included in the weighted average number of shares of common stock outstanding, except when the effect would be antidilutive. The dilutive impact of subsidiary stock-based awards on Comverse Technology, Inc.’s reported net loss is recorded as an adjustment to net loss for the three and nine months ended October 31, 2012 and 2011, for the purposes of calculating loss per share.
The calculation of earnings (loss) per share attributable to Comverse Technology Inc.’s shareholders for the three and nine months ended October 31, 2012 and 2011, was as follows:
 
Three Months Ended October 31,
 
Nine Months Ended October 31,
 
2012
 
2011
 
2012
 
2011
 
(In thousands, except per share data)
Numerator:
 
 
 
 
 
 
 
Net loss attributable to Comverse Technology, Inc. from continuing operations - basic
$
(10,960
)
 
$
(11,083
)
 
$
(38,442
)
 
$
(55,932
)
Adjustment for subsidiary stock options
—

 
(37
)
 
(145
)
 
(88
)
Net loss attributable to Comverse Technology, Inc. from continuing operations - diluted
$
(10,960
)
 
$
(11,120
)
 
$
(38,587
)
 
$
(56,020
)
Net income (loss) attributable to Comverse Technology, Inc. from discontinued operations- basic and diluted
$
14,644

 
$
46,773

 
$
(15,989
)
 
$
(7,270
)
Denominator:
 
 
 
 
 
 
 
Basic and diluted weighted average common shares outstanding
219,239

 
205,886

 
219,069

 
205,891

Earnings (loss) per share
 
 
 
 
 
 
 
Basic and diluted
 
 
 
 
 
 
 
Loss per share from continuing operations attributable to Comverse Technology, Inc.
$
(0.05
)
 
$
(0.05
)
 
$
(0.18
)
 
$
(0.27
)
Earnings (loss) per share from discontinued operations attributable to Comverse Technology, Inc.
0.07

 
0.22

 
(0.07
)
 
(0.04
)
Basic and diluted earnings (loss) per share
$
0.02

 
$
0.17

 
$
(0.25
)
 
$
(0.31
)

As a result of the Company’s net loss from continuing operations attributable to Comverse Technology, Inc. during the three and nine months ended October 31, 2012 and 2011, the diluted loss per share attributable to Comverse Technology, Inc.’s shareholders computation excludes 0.8 million, 0.8 million, 0.5 million and 0.9 million of contingently issuable shares, respectively, because the effect would be antidilutive.
The FASB’s guidance requires contingently convertible instruments be included in diluted earnings per share, if dilutive, regardless of whether a market price trigger has been met. The Convertible Debt Obligations meet the definition of a contingently convertible instrument. The Convertible Debt Obligations were excluded from the computation of diluted earnings per share attributable to Comverse Technology, Inc.’s shareholders because the effect would be antidilutive for the three and nine months ended October 31, 2012 and 2011.