Net (Loss) Income Per Share

3 Months Ended

Jun. 30, 2014

Net (Loss) Income Per Share

Note 2. Net (Loss) Income Per Share

Basic net (loss) income per share is computed by dividing net (loss) income by the weighted average number of common shares outstanding during the period. Diluted net (loss) income per share is computed by dividing net (loss) income by the weighted average number of dilutive common shares outstanding during the period. Diluted shares outstanding are 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 (loss) income per share for the three months ended June 30, 2014 and 2013 were as follows (in thousands, except per share data):

	Three Months Ended June 30,
	2014			2013
Basic Net (Loss) Income Per Share
Net loss	$	(1,709	)	$	(1,723	)
Weighted average shares used in computing basic net loss per share		40,062			38,678
Net loss per share - basic	$	(0.04	)	$	(0.04	)

	Three Months Ended June 30,
	2014			2013
Diluted Net (Loss) Income Per Share
Net loss	$	(1,709	)	$	(1,723	)
Weighted average shares used in computing basic net loss per share		40,062			38,678
Effect of dilutive securities		—			—
Weighted average shares used in computing diluted net loss per share		40,062			38,678
Net loss per share - diluted	$	(0.04	)	$	(0.04	)

For the three months ended June 30, 2014, approximately 3,678,000 shares underlying stock options and approximately 1,242,000 restricted shares and restricted stock units were excluded from the calculation of diluted weighted average shares outstanding because the Company incurred a loss in the period and to include them would have been anti-dilutive.

For the three months ended June 30, 2013, approximately 4,326,000 shares underlying stock options and approximately 1,168,000 restricted shares and restricted stock units were excluded from the calculation of diluted weighted average shares outstanding because the Company incurred a loss in the period and to include them would have been anti-dilutive.