8x8 1998 Annual Report Download - page 41

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8X8, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
There were no adjustments to the numerators for any period presented. The reconciliation of the denominators is as follows (in thousands):
The following equity instruments were not included in the computations of net income (loss) per share because the effect on the calculations
would be anti-dilutive (in thousands):
RECENT ACCOUNTING PRONOUNCEMENTS
In June 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 130 (FAS 130), "Reporting
Comprehensive Income." FAS 130 establishes standards for the reporting of comprehensive income and its components in financial statements
of the Company beginning in fiscal 1999. Comprehensive income, as defined, includes all changes in equity (net assets) during a period from
non-owner sources. Reclassification of financial statements for earlier periods for comparative purposes is required. Adoption by the Company
in fiscal 1999 is not expected to have a significant effect on the Company's disclosure requirements.
In June 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 131 (FAS 131), "Disclosures
about Segments of an Enterprise and Related Information." FAS 131 revises information regarding the reporting of certain operating segments
for periods beginning after December 15, 1997. The Statement also establishes standards for related disclosures about products and services,
geographic areas, and major customers. The Company will adopt FAS 131 in its fiscal 1999 annual report. The Company has not yet
determined the impact, if any, of adopting this new standard.
In October 1997, the American Institute of Certified Public Accountants (AICPA) issued Statement of Position No. 97-2 (SOP 97-2),"
Software Revenue Recognition," which supersedes SOP 91-1. SOP 97-2 will become effective for transactions entered into beginning in fiscal
1999. Retroactive application of the provisions of SOP 97-2 is prohibited.
36
YEAR ENDED MARCH 31,
------------------------
1998 1997 1996
------ ----- -----
Basic shares........................................ 12,083 5,312 4,598
Effect of dilutive securities:
Preferred Stock................................... 973 -- --
Common stock options.............................. 1,376 -- --
Unvested restricted common stock.................. 696 -- --
------ ----- -----
Diluted shares...................................... 15,128 5,312 4,598
====== ===== =====
YEAR ENDED MARCH 31,
------------------------
1998 1997 1996
------ ----- -----
Preferred Stock..................................... -- 3,726 3,042
Common stock options................................ 287 2,291 2,561
Unvested restricted common stock.................... -- 1,296 1
------ ----- -----
Total..................................... 287 7,313 5,604
====== ===== =====