8x8 1999 Annual Report Download - page 48

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8X8, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
COMPREHENSIVE INCOME
In fiscal 1999, the Company adopted Statement of Financial Accounting Standards No. 130, "Reporting Comprehensive Income."
Comprehensive income, as defined, includes all changes in equity (net assets) during a period from non-owner sources. The primary difference
between net income and comprehensive income, for the Company, is due to unrealized losses on short-term investments classified as available-
for-sale. Comprehensive income is being shown in the consolidated statements of stockholders' equity.
SEGMENT INFORMATION
In fiscal 1999, the Company adopted Statement of Financial Accounting Standards No. 131 (FAS 131), "Disclosures about Segments of an
Enterprise and Related Information." This statement establishes standards for the way companies report information about operating segments
in annual financial statements. It also establishes standards for related disclosures about products and services, geographical areas and major
customers. In accordance with the provisions of FAS 131, the Company determined that it has one reportable operating segment.
RECLASSIFICATIONS
Certain prior year balances have been reclassified to conform with the fiscal 1999 presentation.
NET INCOME (LOSS) PER SHARE
Basic net income (loss) per share is computed by dividing net income (loss) available to common stockholders (numerator) by the weighted
average number of common shares outstanding during the period (denominator). Diluted net income
Potential common shares result from the assumed exercise, using the treasury stock method, of outstanding convertible noncumulative
preferred stock (Preferred Stock), common stock options and unvested restricted common stock having a dilutive effect.
basic and diluted per share amounts 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):
43
YEAR ENDED MARCH 31,
-------------------------
1999 1998 1997
------ ------ -----
Basic shares.............................................. 15,018 12,083 5,312
Effect of dilutive securities:
Preferred Stock......................................... -- 973 --
Common stock options.................................... -- 1,376 --
Unvested restricted common stock........................ -- 696 --
------ ------ -----
Diluted shares............................................ 15,018 15,128 5,312
====== ====== =====
YEAR ENDED MARCH 31,
----------------------
1999 1998 1997
----- ---- -----
Preferred Stock............................................. -- -- 3,726
Common stock options:....................................... 3,430 287 2,291
Unvested restricted common stock............................ 143 -- 1,296
----- --- -----
Total.................................................. 3,573 287 7,313
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