Annual report pursuant to Section 13 and 15(d)

NET LOSS PER COMMON SHARE

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NET LOSS PER COMMON SHARE
 12 Months Ended
Dec. 31, 2012
NET LOSS PER COMMON SHARE

NOTE 2—NET LOSS PER COMMON SHARE

Basic net loss per common share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period. Diluted net loss per common share is computed by giving effect to all potential dilutive common shares, including outstanding options and warrants.

Potential dilutive common shares also include the dilutive effect of the common stock underlying in-the-money stock options and warrants that were calculated based on the average share price for each period using the treasury stock method. Under the treasury stock method, the exercise price of an option or warrant, is assumed to be used to repurchase shares in the current period. In addition, the average amount of compensation cost for in-the-money options, if any, for future service that the Company has not yet recognized when the option is exercised, is also assumed to repurchase shares in the current period.

A reconciliation of the numerator and denominator used in the calculation is as follows (in thousands, except per share amounts):

 

     Years Ended December 31,  
     2012     2011     2010  

Numerator:

       

Net loss

    $ (71,135 )    $ (25,653 )    $ (18,682 ) 
  

 

 

    

 

 

    

 

 

  

Denominator:

       

Weighted-average number of common shares outstanding

      54,219        45,900        33,654   
  

 

 

    

 

 

    

 

 

  

Net loss per share:

       

Basic

    $ (1.31 )    $ (0.56 )    $ (0.56 ) 
  

 

 

    

 

 

    

 

 

  

Diluted

    $ (1.31 )    $ (0.56 )    $ (0.56 ) 
  

 

 

    

 

 

    

 

 

  

The following warrants, outstanding options, common stock subject to repurchase and purchase rights under the Company’s ESPP were excluded from the computation of diluted net loss per common share for the periods presented because including them would have had an antidilutive effect (in thousands):

 

     December 31,  
     2012      2011      2010  

Shares issuable upon exercise of warrants

      11,583         16,643         10,918   

Shares issuable upon exercise of stock options

      5,099         3,672         2,746   

Shares issuable related to the ESPP

      79         70         61