Net Income (Loss) Per Share

9 Months Ended

Dec. 31, 2011

Net Income (Loss) Per Share

Note 8. Net Income (Loss) Per Share

Basic net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of dilutive common shares outstanding during the period. Diluted shares outstanding is calculated by adding to the weighted shares outstanding any potential dilutive securities outstanding for the period. Potential dilutive securities include stock options, restricted stock, restricted stock units, performance stock and shares to be purchased under the employee stock purchase plan. In periods when a net loss is reported, all common stock equivalents are excluded from the calculation because they would have an anti-dilutive effect, meaning the loss per share would be reduced. Therefore, in periods when a loss is reported basic and dilutive loss per share is the same.

	Three Months  Ended December 31,					Nine Months  Ended December 31,
	2011		2010			2011			2010
Basic Net Income (Loss) Per Share
Net income (loss)	$	2,921	$	(802	)	$	(1,072	)	$	(9,983	)
Weighted average shares used in computing basic net income per share		38,498		37,195			38,221			37,146
Net income (loss) per share - basic	$	0.08	$	(0.02	)	$	(0.03	)	$	(0.27	)
Diluted Net Income (Loss) Per Share
Net income (loss)	$	2,921	$	(802	)	$	(1,072	)	$	(9,983	)
Weighted average shares used in computing basic net income per share		38,498		37,195			38,221			37,146
Effect of dilutive securities		1,772		—			—			—
Weighted average shares used in computing diluted net income per share		40,270		37,195			38,221			37,146
Net income (loss) per share - diluted	$	0.07	$	(0.02	)	$	(0.03	)	$	(0.27	)

For the three months ended December 31, 2011, approximately 391,000 shares underlying outstanding securities were not included in the computation of diluted earnings per share primarily related to performance milestone awards where a milestone was not met as of the period end.

For the three months ended December 31, 2010, underlying stock options of approximately 6,055,000 and unvested restricted shares of approximately 653,000 are excluded from the calculation of diluted weighted average shares outstanding because the Company incurred a loss for the three month period and to include them would have been antidilutive. For the nine months ended December 31, 2011 and 2010, respectively, underlying stock options of approximately 4,544,000 and 6,055,000 and restricted shares of approximately 867,000 and 653,000 are excluded from the calculation of diluted weighted average shares outstanding because the Company incurred a loss for the nine month period, respectively, and to include them would have been antidilutive.