Net Income (Loss) Per Share

9 Months Ended

Dec. 31, 2012

Net Income (Loss) Per Share

Note 2. 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 average shares outstanding any potential dilutive securities outstanding for the period. Potential dilutive securities include stock options, restricted stock awards, restricted stock units, performance-based stock awards and shares to be purchased under the Company’s 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 are the same. The Company’s basic and diluted net income (loss) per share for the three and nine months ended December 31, 2012 were as follows (in thousands, except per share data):

	Three Months Ended December 31,				Nine Months Ended December 31,
	2012		2011		2012		2011
Basic Net Income (Loss) Per Share
Net income (loss)	$	2,684	$	2,921	$	11,272	$	(1,072	)
Weighted average shares used in computing basic net income (loss) per share		39,417		38,498		39,331		38,221
Net income (loss) per share - basic	$	0.07	$	0.08	$	0.29	$	(0.03	)

	Three Months Ended December 31,				Nine Months Ended December 31,
	2012		2011		2012		2011
Diluted Net Income (Loss) Per Share
Net income (loss)	$	2,684	$	2,921	$	11,272	$	(1,072	)
Weighted average shares used in computing basic net income (loss) per share		39,417		38,498		39,331		38,221
Effect of dilutive securities		1,448		1,772		2,087		—
Weighted average shares used in computing diluted net income (loss) per share		40,865		40,270		41,418		38,221
Net income (loss) per share - diluted	$	0.07	$	0.07	$	0.27	$	(0.03	)

For the three and nine months ended December 31, 2012, approximately 908,000 and 562,000 shares underlying outstanding securities, primarily out-of-the-money stock options and performance-based awards for which milestones were not met, were not included in the computation of diluted earnings per share. 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 out-of-the-money stock options and performance-based awards where milestones were not met. For the nine months ended December 31, 2011, approximately 4,544,000 shares underlying stock options and approximately 867,000 unvested shares of restricted stock were excluded from the calculation of diluted weighted average shares outstanding because the Company incurred a loss for the nine month period, and to include them would have been anti-dilutive.