STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE

9 Months Ended

Dec. 31, 2013

STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE

STOCKHOLDERS' EQUITY AND EARNINGS PER SHARE

6. STOCKHOLDERS’ EQUITY AND EARNINGS PER SHARE

Basic net income (loss) per share is computed using the net income (loss) and the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed using the net income (loss) and the weighted average number of common shares and potential common shares outstanding during the period when the potential common shares are dilutive. Potential dilutive common shares consist of outstanding stock options.  The following table presents the calculation of basic and diluted net income (loss) per share (in thousands, except per share amounts):

	Three Months Ended December 31,						Nine Months Ended December 31,
	2013			2012			2013			2012
Net income (loss):
Loss from continuing operations, net of tax	$	(798	)	$	(1,552	)	$	(4,801	)	$	(4,271	)
Income from discontinued operations, net of tax	7,195			870			8,782			2,584
Net income (loss)	$	6,397		$	(682	)	$	3,981		$	(1,687	)
Weighted average shares:
Weighted-average shares of common stock outstanding used in computing basic net income (loss) per share	30,176			28,218			30,116			28,206
Weighted average shares of potential dilutive common shares	—			—			—			—
Weighted average shares used in computing diluted net income (loss) per share	30,176			28,218			30,116			28,206
Basic and diluted net income (loss) per share:
Loss from continuing operations	$	(0.03	)	$	(0.05	)	$	(0.16	)	$	(0.15	)
Income from discontinued operations	$	0.24		$	0.03		$	0.29		$	0.09
Net income (loss)	$	0.21		$	(0.02	)	$	0.13		$	(0.06	)

The following table sets forth potential shares of common stock that are not included in the diluted net income (loss) per share calculation because to do so would be antidilutive for the periods indicated below (in thousands):

	Three Months Ended December 31,		Nine Months Ended December 31,
	2013	2012	2013	2012
Options that were not included in the computation of diluted shares outstanding because the Company did not report net income from continuting operations, prior to applying the treasury stock method	3,623	3,085	3,879	3,196
Holdback shares from acquisition of Storycode	444	—	444	—

The change in accumulated other comprehensive income (loss) during the three and nine month periods ended December 31, 2013 and 2012 is the result of the effect of foreign exchange rate changes.