Loss Per Common Share

9 Months Ended

Jul. 31, 2011

Loss Per Common Share [Abstract]

LOSS PER COMMON SHARE

NOTE 7 — LOSS PER COMMON SHARE

Basic loss per common share is computed by dividing net loss allocated to common shares by the weighted average number of common shares outstanding. Diluted loss per common share considers the dilutive effect of common stock equivalents. The reconciliation of the numerator and denominator used for the computation of basic and diluted loss per common share is as follows (in thousands, except per share data):

	Fiscal Three Months Ended						Fiscal Nine Months Ended
	July 31, 2011			August 1, 2010			July 31, 2011			August 1, 2010
Numerator for Basic and Diluted Loss Per Common Share
Net loss allocated to common shares (1)	$	(13,077	)	$	(16,519	)	$	(43,067	)	$	(292,671	)
Denominator for Basic and Diluted Loss Per Common Share
Weighted average common shares outstanding for basic and diluted loss per share		18,467			18,274			18,292			18,184
Basic and Diluted loss per common share	$	(0.71	)	$	(0.90	)	$	(2.35	)	$	(16.10	)

(1) Participating securities consist of the holders of the Convertible Preferred Stock, as defined below, and the unvested restricted Common Stock related to our Incentive Plan. Participating securities do not have a contractual obligation to share in losses; therefore, no losses were allocated in any periods presented above. These participating securities will be allocated earnings when applicable.

We calculate earnings per share using the “two-class” method, whereby unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents are “participating securities” and, therefore, these participating securities are treated as a separate class in computing earnings per share. The calculation of earnings per share for Common Stock presented here excludes the income, if any, attributable to the unvested restricted stock awards and our Series B Cumulative Convertible Participating Preferred Stock (“Convertible Preferred Stock,” and shares thereof, “Preferred Shares”) from the numerator and excludes the dilutive impact of those shares from the denominator. There was no income amount attributable to unvested restricted stock or Preferred Shares for the three and nine month periods ended July 31, 2011 and August 1, 2010 as the restricted stock and Preferred Shares do not share in the net losses. However, in periods of net income, a portion of this income will be allocable to the restricted stock and Preferred Shares. As of July 31, 2011 and October 31, 2010, the Preferred Shares were convertible into 45.7 million and 44.3 million shares of Common Stock, respectively.

For both the three and nine month periods ended July 31, 2011 and August 1, 2010, all options and unvested restricted shares were anti-dilutive and, therefore, not included in the diluted loss per common share calculation.