COMPUTATION OF NET LOSS PER SHARE

6 Months Ended

Mar. 31, 2013

Earnings Per Share [Abstract]

COMPUTATION OF NET LOSS PER SHARE

COMPUTATION OF NET LOSS PER SHARE

In accordance with ASC Topic 260, Earnings per Share, basic net income and loss per share is computed by dividing net income or loss by the weighted average number of common shares outstanding during the period.

For periods in which we report net income, the weighted average number of shares used to calculate diluted income per share is inclusive of common stock equivalents from unexercised stock options, restricted stock units, shares to be issued under our Employee Stock Purchase Plan (“ESPP”), convertible preferred stock, 2014 Debentures and the Term B Loan. Unexercised stock options, restricted stock units, and unvested shares to be issued under our ESPP, are considered to be common stock equivalents if, using the treasury stock method, they are determined to be dilutive.

Under the two-class method of determining earnings for each class of stock, we consider the dividend rights and participating rights in undistributed earnings for each class of stock. The allocation of undistributed earnings to preferred shares is equal to the amount of earnings per common share that would be distributed on an as-converted basis.

The following potentially dilutive common shares are excluded from the computation of net loss per share.

	Three and Six Months Ended March 31,
	2013	2012
	(in thousands)
Outstanding stock options	2,130	1,847
Outstanding restricted stock units	2,388	1,743
ESPP shares	518	327
Convertible preferred stock	674	674
2014 Debentures	10,332	10,332
Term B Loan	1,887	1,887
Total potential common stock excluded from calculation	17,929	16,810