Quarterly report pursuant to Section 13 or 15(d)

NET LOSS PER COMMON SHARE

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NET LOSS PER COMMON SHARE
 9 Months Ended
Sep. 30, 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, are 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, are 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):

 

     Three Months Ended
September 30,		     Nine Months Ended
September 30,		  
     2012     2011     2012     2011  

Numerator:

         

Net loss — basic

    $ (991 )    $ (4,125 )    $ (99,523 )    $ (20,378 ) 

Less: noncash income from change in fair value of common stock warrants

      (2,967 )      —          —          —     
  

 

 

    

 

 

    

 

 

    

 

 

  

Net loss — diluted

    $ (3,958 )    $ (4,125 )    $ (99,523 )    $ (20,378 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Denominator:

         

Weighted average common shares outstanding

      55,654        49,052        53,516        44,812   

Dilutive effect of warrants

      8,751        —          —          —     
  

 

 

    

 

 

    

 

 

    

 

 

  

Weighted-average common shares outstanding and potential dilutive common shares — diluted

      64,405        49,052        53,516        44,812   
  

 

 

    

 

 

    

 

 

    

 

 

  

Net loss per share

         

Basic

    $ (0.02 )    $ (0.08 )    $ (1.86 )    $ (0.45 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

Diluted

    $ (0.06 )    $ (0.08 )    $ (1.86 )    $ (0.45 ) 
  

 

 

    

 

 

    

 

 

    

 

 

  

The following outstanding warrants, options and purchase rights under the Company’s 2004 Employee Stock Purchase Plan were excluded from the computation of diluted net loss per share for the periods presented because including them would have had an antidilutive effect. The amounts disclosed below are prior to the application of the treasury stock method (in thousands):

 

     Three Months Ended
September 30,		      Nine Months Ended
September 30,		  
     2012      2011      2012      2011  

Shares issuable upon exercise of warrants

      —           16,643         11,726         16,643   

Shares issuable upon exercise of stock options

      5,129         3,531         5,129         3,531   

Shares issuable related to the ESPP

      48         40         48         40