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Earnings (Loss) Per Share Attributable To Comverse Technology, Inc.'s Shareholders
 9 Months Ended
Oct. 31, 2011
Earnings (Loss) Per Share Attributable To Comverse Technology, Inc.'s Shareholders [Abstract]  
Earning (Loss) Per Share Attributable To Comverse Technology, Inc.'s Shareholders

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

Basic earnings (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 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 income is recorded as an adjustment to net income for the three months ended October 31, 2011 and as an adjustment to net loss for the nine months ended October 31, 2011 and three and nine months ended October 31, 2010, respectively, for the purposes of calculating earnings (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, 2011 and 2010 was as follows:

 

     Three Months Ended October 31,     Nine Months Ended October 31,  
     2011     2010     2011     2010  
     (In thousands, except per share data)  

Numerator:

         

Net income (loss) from continuing operations attributable to Comverse Technology, Inc. - basic

    $ 35,690      $ (40,929 )    $ (63,202 )    $ (144,753 ) 

Adjustment for subsidiary stock options

      (38 )      (2,027 )      (88 )      —     
  

 

 

    

 

 

    

 

 

    

 

 

  

Net income (loss) from continuing operations attributable to Comverse Technology, Inc. - diluted

    $ 35,652      $ (42,956 )    $ (63,290 )    $ (144,753 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Net loss from discontinued operations, attributable to Comverse Technology, Inc. - basic and diluted

    $ —        $ (774 )    $ —        $ (2,998 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Denominator:

         

Basic weighted average common shares outstanding

      205,886        205,265        205,891        205,135   

Convertible debt obligations

      117        —          —          —     

Stock options

      404        —          —          —     

Restricted awards

      322        —          —          —     
  

 

 

    

 

 

    

 

 

    

 

 

  

Diluted weighted average common shares outstanding

      206,729        205,265        205,891        205,135   
  

 

 

    

 

 

    

 

 

    

 

 

  

Earnings (loss) per share

         

Basic

         

Earnings (loss) per share from continuing operations attributable to Comverse Technology, Inc.

    $ 0.17      $ (0.20 )    $ (0.31 )    $ (0.71 ) 

Loss per share from discontinued operations attributable to Comverse Technology, Inc.

      —          (0.00 )      —          (0.01 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Basic earnnings (loss) per share

    $ 0.17      $ (0.20 )    $ (0.31 )    $ (0.72 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Diluted

         

Earnings (loss) per share from continuing operations attributable to Comverse Technology, Inc.

    $ 0.17      $ (0.21 )    $ (0.31 )    $ (0.71 ) 

Loss per share from discontinued operations attributable to Comverse Technology, Inc.

      —          (0.00 )      —          (0.01 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Diluted earnings (loss) per share

    $ 0.17      $ (0.21 )    $ (0.31 )    $ (0.72 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

As a result of the Company's net loss attributable to Comverse Technology, Inc. during the nine months ended October 31, 2011, the diluted loss per share attributable to Comverse Technology, Inc.'s shareholders computation excludes 0.9 million of contingently issuable shares, respectively, and, for the three and nine months ended October 31, 2010, such computation excludes 0.5 million and 0.7 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 nine months ended October 31, 2011 and for the three and nine months ended October 31, 2010, respectively.