Avid 2015 Annual Report Download - page 80

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74
Pro Forma Financial Information for Acquisition of Orad (in thousands except per share data, unaudited)
The results of operations of Orad have been included in the results of operations of the Company since June 23, 2015, the date of
acquisition. The net revenues and net loss for Orad, which are included in the Company’s consolidated statements of operations
from the date of acquisition, were $13.1 million and $8.5 million, respectively, for the year ended December 31, 2015. The
following unaudited pro forma financial information presents the Company’s results of operations for the years ended
December 31, 2015 and 2014 as if the acquisition of Orad had occurred at the beginning of 2014. The pro forma financial
information for the combined entities has been prepared for comparative purposes only and is not indicative of what actual results
would have been if the acquisition had taken place at the beginning of fiscal 2014, or of future results.
Year Ended December 31,
2015 2014
Net revenues $ 520,918 $ 570,766
Net (loss) income (2,300) 8,638
Net (loss) income per share:
Basic $ (0.06) $ 0.22
Diluted $ (0.06) $ 0.22
D. NET INCOME PER SHARE
Net income per common share is presented for both basic income per share (“Basic EPS”) and diluted income per share (“Diluted
EPS”). Basic EPS is based on the weighted-average number of common shares outstanding during the period. Diluted EPS is based on
the weighted-average number of common shares and common shares equivalents outstanding during the period.
The potential common shares that were considered anti-dilutive securities were excluded from the diluted earnings per share
calculations for the relevant periods either because the sum of the exercise price per share and the unrecognized compensation cost per
share was greater than the average market price of the Company’s common stock for the relevant period, or because they were
considered contingently issuable. The contingently issuable potential common shares result from certain stock options and restricted
stock units granted to the Company’s employees that vest based on performance conditions, market conditions, or a combination of
performance or market conditions.
The following table sets forth (in thousands) potential common shares that were considered anti-dilutive securities.
Year Ended December 31,
2015 2014 2013
Options 1,901 4,748 5,193
Non-vested restricted stock units 470 118 352
Anti-dilutive potential common shares 2,371 4,866 5,545
On June 15, 2015, the Company issued $125.0 million aggregate principal amount of its 2.00% Convertible Senior Notes due 2020
(the “Notes”). The Notes are convertible into cash, shares of the Company’s common stock or a combination of cash and shares of
common stock, at the Company’s election, based on an initial conversion rate, subject to adjustment. In connection with the offering
of the Notes, the Company entered into a capped call transaction with a third party (the “Capped Call”) (see Note R, Long-Term Debt
and Credit Agreement). The Company uses the treasury stock method in computing the dilutive impact of the Notes. The Notes are
convertible into shares but the Company’s stock price was less than the conversion price at December 31, 2015, and therefore, the
Notes are excluded from diluted income per share. The Capped Call is not reflected in diluted net income per share as it will always be
anti-dilutive.