NET LOSS PER COMMON SHARE

9 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

NET LOSS PER COMMON SHARE

NET LOSS PER COMMON SHARE

Basic earnings per common share is calculated using the weighted‑average number of common shares outstanding during the period less the weighted‑average shares subject to repurchase. Diluted earnings per common share, if any, gives effect to dilutive common stock subject to repurchase, stock options (calculated based on the treasury stock method), shares purchased under the employee stock purchase plan and convertible debt (calculated using an as-if-converted method).

The following table sets forth a reconciliation of basic and diluted net income (loss) per common share (in thousands except per common share amounts):

	Three Months Ended September 30,					Nine Months Ended September 30,
	2014		2013			2014			2013
Net income (loss)	$	2,384	$	(4,156	)	$	(9,001	)	$	(25,700	)
Add effect of dilutive securities:
Interest on convertible notes	—		—			—			—
Adjusted net income (loss)	$	2,384	$	(4,156	)	$	(9,001	)	$	(25,700	)
Shares used in computing basic net income (loss) per common share	73,413		71,600			72,955			71,227
Add effect of dilutive securities:
Employee stock compensation plans	1,170		—			—			—
Common stock subject to repurchase	1,732		—			—			—
Convertible notes	—		—			—			—
Shares used in computing diluted net income (loss) per common share	76,315		71,600			72,955			71,227
Basic net income (loss) per common share	$	0.03	$	(0.06	)	$	(0.12	)	$	(0.36	)
Diluted net income (loss) per common share	$	0.03	$	(0.06	)	$	(0.12	)	$	(0.36	)

The potential dilutive securities excluded from diluted net income (loss) per common share were as follows (in thousands):

	Three Months Ended September 30,		Nine Months Ended September 30,
	2014	2013	2014	2013
Employee stock options	3,283	5,364	4,452	5,364
Employee stock purchase plan	174	—	88	—
Restricted stock and restricted stock units	1,918	3,252	3,650	3,252
Convertible notes	17,857	17,857	17,857	17,864
Total	23,232	26,473	26,047	26,480