16. LOSS PER SHARE ATTRIBUTABLE TO COMVERSE TECHNOLOGY, INC.'S SHAREHOLDERS

For purposes of computing basic loss per share attributable to Comverse Technology, Inc.'s shareholders, any unvested shares of restricted stock that have been issued by the Company and which vest solely on the basis of a service condition are excluded from the weighted average number of shares of common stock outstanding because such restricted stock does not allow the holders to receive dividends that participate in undistributed earnings. Incremental potential shares of common stock from stock options, unvested restricted stock and DSUs are included in the computation of diluted loss per share attributable to Comverse Technology, Inc.'s shareholders except when the effect would be antidilutive. The dilutive impact of outstanding stock-based awards on Comverse Technology, Inc.'s reported net loss is recorded as an adjustment to net loss for the purposes of calculating loss per share.

The calculation of loss per share attributable to Comverse Technology, Inc.'s shareholders for the three and nine months ended October 31, 2010 and 2009 was as follows:


	Three Months Ended October 31,						Nine Months Ended October 31,
	2010			2009			2010			2009
	(In thousands, except per share data)
Numerator:
Net loss attributable to Comverse Technology, Inc.-basic	$	(40,929	)	$	(54,654	)	$	(144,753	)	$	(174,821	)
Adjustment for subsidiary stock options		(2,027	)		(185	)		—			(190	)

Net loss attributable to Comverse Technology, Inc.-diluted	$	(42,956	)	$	(54,839	)	$	(144,753	)	$	(175,011	)

Net (loss) income from discontinued operations, attributable to Comverse Technology, Inc.-basic and diluted		(774	)		(31,872	)		(2,998	)		3,241

Denominator:
Basic and diluted weighted average common shares outstanding		205,265			204,550			205,135			204,464

Loss per share
Basic
Loss per share from continuing operations attributable to Comverse Technology, Inc.	$	(0.20	)	$	(0.26	)	$	(0.71	)	$	(0.86	)

(Loss) earnings per share from discontinued operations attributable to Comverse Technology, Inc.	$	(0.00	)	$	(0.16	)	$	(0.01	)	$	0.02

Basic loss per share	$	(0.20	)	$	(0.42	)	$	(0.72	)	$	(0.84	)


Diluted
Loss per share from continuing operations attributable to Comverse Technology, Inc.	$	(0.21	)	$	(0.26	)	$	(0.71	)	$	(0.86	)
(Loss) earnings per share from discontinued operations attributable to Comverse Technology, Inc.		(0.00	)		(0.16	)		(0.01	)		0.02

Diluted loss per share	$	(0.21	)	$	(0.42	)	$	(0.72	)	$	(0.84	)

As a result of the Company's net loss attributable to Comverse Technology, Inc. during the three and nine months ended October 31, 2010, the diluted loss per share attributable to Comverse Technology, Inc.'s shareholders computation excludes 0.5 million and 0.7 million of contingently issuable shares, respectively, and for the three and nine months ended October 31, 2009, such computation excludes 0.8 million and 0.6 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, 2010 and the three and nine months ended October 31, 2009.