Annual report pursuant to Section 13 and 15(d)

Net Income (Loss) Per Common Share

v3.7.0.1
Net Income (Loss) Per Common Share
12 Months Ended
Dec. 31, 2016
Earnings Per Share [Abstract]  
Net Income (Loss) Per Common Share

NOTE 2—NET INCOME (LOSS) PER COMMON SHARE

Basic net income (loss) per common share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period. Diluted net income (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 proceeds from the exercise 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,

 

 

 

2016

 

 

2015

 

 

2014

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) - basic

 

$

(24,094

)

 

$

43,822

 

 

$

(21,584

)

Less: noncash income from change in fair value of

   common stock warrants

 

 

 

 

 

3,906

 

 

 

9,344

 

Net income (loss) - diluted

 

 

(24,094

)

 

 

39,916

 

 

$

(30,928

)

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average number of common shares outstanding

 

 

71,524

 

 

 

70,242

 

 

 

60,335

 

Dilutive effect of equity incentive awards

 

 

 

 

 

1,873

 

 

 

 

Dilutive effect of warrants

 

 

 

 

 

1,368

 

 

 

3,051

 

Weighted-average common shares outstanding and dilutive

   potential common share-diluted

 

 

71,524

 

 

 

73,483

 

 

 

63,386

 

Net income (loss) per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.34

)

 

$

0.62

 

 

$

(0.36

)

Diluted

 

$

(0.34

)

 

$

0.54

 

 

$

(0.49

)

 

The following warrants, outstanding options and purchase rights under the Company’s 2004 Employee Stock Purchase Plan (“2004 Purchase Plan”) were excluded from the computation of diluted net income (loss) per common share for the periods presented because including them would have had an antidilutive effect (in thousands)

 

 

 

Years Ended December 31,

 

 

 

2016

 

 

2015

 

 

2014

 

Shares issuable upon exercise of warrants

 

 

8,300

 

 

 

8,300

 

 

 

 

Shares issuable upon exercise of stock options

 

 

10,942

 

 

 

6,750

 

 

 

8,169

 

Shares issuable related to the ESPP

 

 

31

 

 

 

34

 

 

 

67