Earnings per Share and Stock-Based Compensation (Tables)

6 Months Ended

Apr. 30, 2013

Reconciliation of Denominator of Each Net Loss Per Share

The table below sets forth the reconciliation of the denominator of each net loss per share calculation for the second quarter and first half ended April 30, 2013 and 2012:

Second Quarter Ended
April 30,

First Half Ended
April 30,

In thousands

2013

2012

2013

2012

Shares used in computing basic net loss per share

166,815

163,953

166,282

163,655

Dilutive effect of stock options and restricted stock⁽¹⁾

—

Dilutive effect of stock warrants⁽¹⁾

—

Shares used in computing diluted net loss per share

166,815

163,953

166,282

163,655

⁽¹⁾

For the second quarter ended April 30, 2013 and 2012, the shares used in computing diluted net loss per share do not include 4,389,000 and 4,080,000, respectively, of dilutive stock options and shares of restricted stock, nor 18,074,000 and 14,321,000, respectively, of dilutive warrant shares as the effect is anti-dilutive given the Company’s loss. For the second quarter ended April 30, 2013 and 2012, additional stock options outstanding of 6,252,000 and 10,264,000, respectively, and additional warrant shares outstanding of 7,580,000 and 11,333,000, respectively, were excluded from the calculation of diluted EPS, as their effect would have been anti-dilutive based on the application of the treasury stock method. For the first half ended April 30, 2013 and 2012, the shares used in computing diluted net loss per share do not include 3,814,000 and 3,979,000, respectively, of dilutive stock options and shares of restricted stock, nor 16,833,000 and 13,349,000, respectively, of dilutive warrant shares as the effect is anti-dilutive given the Company’s loss. For the first half ended April 30, 2013 and 2012, additional stock options outstanding of 6,936,000 and 10,556,000, respectively, and additional warrant shares outstanding of 8,821,000 and 12,305,000, respectively, were excluded from the calculation of diluted EPS, as their effect would have been anti-dilutive based on the application of the treasury stock method.

Schedule of Performance Based Options and Performance Based Restricted Stock Units

Activity related to performance based options and performance based restricted stock units for the first half ended April 30, 2013 is as follows:


	Performance Options			Performance Restricted Stock Units
Non-vested, October 31, 2012		856,000			7,929,375
Granted		—			5,750,000
Vested		—			—
Canceled		(112,000	)		(2,097,343	)

Non-vested, April 30, 2013		744,000			11,582,032

Schedule of Changes in Shares Under Option, Excluding Performance Based Options

Changes in shares under option, excluding performance based options, for the first half ended April 30, 2013 are as follows:


Dollar amounts in thousands, except per share amounts	Shares			Weighted Average Price		Weighted Average Life		Aggregate Intrinsic Value
Outstanding, October 31, 2012		12,325,499		$	4.49
Granted		150,000			6.45
Exercised		(1,046,128	)		3.13			$	2,273
Canceled		(1,376,505	)		7.08

Outstanding, April 30, 2013		10,052,866		$	4.31		5.4	$	28,240


Options exercisable, April 30, 2013		7,304,371		$	4.54		5.0	$	19,869

Schedule of Changes in Non-Vested Shares Under Option, Excluding Performance Based Options

Changes in non-vested shares under option, excluding performance based options, for the first half ended April 30, 2013 are as follows:


	Shares			Weighted- Average Grant Date Fair Value
Non-vested, October 31, 2012		4,422,172		$	1.92
Granted		150,000			4.61
Vested		(1,613,676	)		2.55
Canceled		(210,001	)		1.77

Non-vested, April 30, 2013		2,748,495		$	1.82

Changes in Restricted Stock

Changes in restricted stock for the first half ended April 30, 2013 are as follows:


	Shares
Outstanding, October 31, 2012		801,667
Granted		90,000
Vested		(680,000	)
Forfeited		(26,667	)

Outstanding, April 30, 2013		185,000