Quarterly report pursuant to Section 13 or 15(d)

Net income (loss) per share

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Net income (loss) per share
 3 Months Ended
Mar. 31, 2012
Net income (loss) per share  
Net income (loss) per share

4.              Net income (loss) per share

 

Basic net income (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed by dividing net earnings by the weighted-average number of shares of common stock outstanding during the period and the number of additional shares of common stock that would have been outstanding if potentially dilutive securities had been issued. Potentially dilutive securities include warrant and stock options and shares issuable under our Employee Stock Purchase Plan (Purchase Plan). The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. Under the treasury stock method, an increase in the fair market value of our common stock can result in a greater dilutive effect from potentially dilutive securities.

 

During the periods presented, we had securities outstanding which could potentially dilute basic income (loss) per share, but were excluded from the computation of diluted net income (loss) per share, as their effect would have been antidilutive. These securities outstanding at March 31, 2012 and 2011 consist of the following (in thousands):

 

 

 

March 31,

 

 

 

2012

 

2011

 

Outstanding options

 

13,688

 

11,798

 

Warrant

 

200

 

200

 

Purchase Plan

 

34

 

33

 

 

 

 

 

 

 

 

 

13,922

 

12,031