Net Income (Loss) Per Share

6 Months Ended

Dec. 30, 2012

Net Income (Loss) Per Share

Note 9. Net Income (Loss) Per Share

Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share is calculated by dividing net income (loss) by the weighted average number of common shares outstanding and common equivalent shares from dilutive stock options, employee stock purchase plan and restricted stock using the treasury stock method, except when antidilutive.

The following table reconciles the number of shares utilized in the net income (loss) per share calculations:

	Three Months Ended						Six Months Ended
	December 30, 2012			January 1, 2012			December 30, 2012			January 1, 2012
	(In thousands, except per share amounts)
Numerator:
Net income (loss)	$	(1,775	)	$	2,445		$	(1,978	)	$	5,194
Shares (denominator):
Weighted average common shares outstanding		40,720			42,530			40,772			42,715
Weighted average common shares outstanding subject to repurchase		(364	)		(238	)		(340	)		(225	)
Weighted average shares outstanding—basic		40,356			42,292			40,432			42,490
Weighted average dilutive share equivalents from stock options		—			355			—			392
Weighted average dilutive common shares subject to repurchase		—			115			—			107
Weighted average shares outstanding—diluted		40,356			42,762			40,432			42,989
Earnings (loss) per share:
Basic	$	(0.04	)	$	0.06		$	(0.05	)	$	0.12
Diluted	$	(0.04	)	$	0.06		$	(0.05	)	$	0.12

Unvested restricted stock is subject to repurchase by the Company and therefore is not included in the calculation of the weighted-average shares outstanding for basic earnings per share.

The following common stock equivalents were excluded from the earnings (loss) per share calculation as their effect would have been anti-dilutive:

	Three Months Ended				Six Months Ended
	December 30, 2012		January 1, 2012		December 30, 2012		January 1, 2012
	(In thousands)				(In thousands)
Stock options		7,855		5,531		7,569		4,785
Common shares subject to repurchase		364		—		340		—
Total shares of common stock excluded from diluted net income (loss) per share calculation		8,219		5,531		7,909		4,785