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3. Earnings and Net Income (Loss) per Common Share
Basic earnings per share (EPS) and net loss per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during each period. Diluted net loss per share is computed by dividing net loss by the weighted average number of common shares and common share equivalents outstanding (if dilutive) during each period. The number of common share equivalents, which includes options, is computed using the treasury stock method.
The reconciliation of the denominators used to calculate basic EPS and diluted EPS for the three months ended June 30, 2012 and 2011, respectively, are as follows:
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Three Months
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|
Three Months
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|
|
|
|
Ended
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|
Ended
|
|
|
|
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June 30,
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|
June 30,
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|
|
|
|
2012
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|
2011
|
|
|
|
|
|
|
|
|
|
Basic net income (loss) per common share
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|
|
|
|
|
|
Net income (loss)
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|
$
|
6,600
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|
$
|
(4,966
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)
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|
Weighted-average common shares outstanding
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|
30,341,021
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|
27,738,534
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|
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Basic net income (loss) per common share
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|
$
|
0.22
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|
$
|
(0.18
|
)
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|
|
|
Three Months
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|
Three Months
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|
|
|
|
Ended
|
|
Ended
|
|
|
|
|
June 30,
|
|
June 30,
|
|
|
|
|
2012
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|
2011
|
|
|
|
|
|
|
|
|
|
Diluted net income (loss) per common share
|
|
|
|
|
|
|
Net income (loss)
|
|
$
|
6,600
|
|
$
|
(4,966
|
)
|
|
Weighted-average common shares outstanding
|
|
30,341,021
|
|
27,738,534
|
|
|
Common share equivalents:
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|
|
|
|
|
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Stock options issued
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|
1,069,124
|
|
—
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|
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Weighted average shares outstanding – dilutive (1)
|
|
31,410,145
|
|
27,738,534
|
|
|
Basic net income (loss) per common share
|
|
$
|
0.21
|
|
$
|
(0.18
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)
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(1) For the three months ended June 30, 2011 the Company was in a net loss position, therefore 1,288,173 common stock equivalents were not included in the calculation of diluted loss per common share since they would have had a dilutive effect.
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