Loss Per Share Attributable To Comverse Technology, Inc.'s Shareholders

6 Months Ended

Jul. 31, 2011

Loss Per Share Attributable To Comverse Technology, Inc.'s Shareholders

Loss Per Share Attributable To Comverse Technology, Inc.'s Shareholders

16. 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 loss per share attributable to Comverse Technology, Inc.'s shareholders, shares issuable upon exercise of stock options and deliverable in settlement of unvested DSU 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 purposes of calculating loss per share.

The calculation of loss per share attributable to Comverse Technology Inc.'s shareholders for the three and six months ended July 31, 2011 and 2010 was as follows:

	Three Months Ended July 31,						Six Months Ended July 31,
	2011			2010			2011			2010
	(In thousands, except per share data)
Numerator:
Net loss from continuing operations attributable to Comverse Technology, Inc. - basic	$	(39,697	)	$	(23,173	)	$	(98,892	)	$	(103,824	)
Adjustment for subsidiary stock options		(68	)		(59	)		(51	)		—
Net loss from continuing operations attributable to Comverse Technology, Inc. - diluted	$	(39,765	)	$	(23,232	)	$	(98,943	)	$	(103,824	)
Net loss from discontinued operations, attributable to Comverse Technology, Inc. - basic and diluted		—			(1,000	)		—			(2,224	)
Denominator:
Basic and diluted weighted average common shares outstanding		206,080			205,249			205,893			205,069
Loss per share
Basic and diluted
Loss per share from continuing operations attributable to Comverse Technology, Inc.	$	(0.19	)	$	(0.12	)	$	(0.48	)	$	(0.51	)
Loss per share from discontinued operations attributable to Comverse Technology, Inc.		—			(0.00	)		—			(0.01	)
Basic and diluted loss per share	$	(0.19	)	$	(0.12	)	$	(0.48	)	$	(0.52	)

As a result of the Company's net loss attributable to Comverse Technology, Inc. during the three and six months ended July 31, 2011, the diluted loss per share attributable to Comverse Technology, Inc.'s shareholders computation excludes 0.6 million and 0.8 million of contingently issuable shares, respectively, and, for the three and six months ended July 31, 2010, such computation excludes 0.6 million and 0.8 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 six months ended July 31, 2011 and 2010, respectively.