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Table of Contents
UNITED ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
11. NET INCOME (LOSS) PER SHARE
The following table sets forth the computation of basic and diluted net income (loss) per common share (in thousands, except per share
amounts):
Basic net income (loss) per share reported prior to the adoption of ASC 260-10-45, Earnings Per Share-Other Presentation Matters
, for the
years ended December 31, 2008 and 2007 was $(1.29) and $0.87, respectively. Diluted net income (loss) per share reported prior to the adoption
of ASC 260-10-45 for the years ended December 31, 2008 and 2007 was $(1.29) and $0.83, respectively.
The diluted net income (loss) per common share computations exclude stock options and restricted stock units which are antidilutive.
Weighted-average antidilutive shares for the years ended December 31, 2009, 2008 and 2007 were 5.2 million, 7.1 million and 3.1 million,
respectively.
12. RESTRUCTURING CHARGES
In the year ended December 31, 2009, the Company recorded restructuring charges totaling $2.1 million associated with a reduction in
headcount at its Classmates Media segment. In November 2009, the Classmates Media segment eliminated 71 positions and recorded
restructuring charges related to employee termination benefits. All costs related to the elimination of these positions were recognized and
incurred in the December 2009 quarter.
In the year ended December 31, 2008, the Company recorded restructuring charges totaling $0.7 million, primarily associated with the
closure of its Orem, Utah facility.
In the year ended December 31, 2007, the Company recorded restructuring charges totaling $3.4 million. In October 2007, the Company
eliminated 69 positions and recorded restructuring charges totaling $3.0 million for employee termination benefits within its Communications
segment to better align the segment's cost structure within a mature business for dial-up Internet access services. All costs related to the
elimination of these positions were recognized and incurred in the December 2007
F-39
Year Ended December 31,
2009
2008
2007
Numerator:
Net income (loss)
$
70,085
$
(94,657
)
$
57,777
Income allocated to participating securities
(4,647
)
(3,065
)
(3,079
)
Net income (loss) applicable to common stockholders
$
65,438
$
(97,722
)
$
54,698
Denominator:
Weighted
-
average common shares
83,698
73,261
67,178
Less: weighted
-
average common shares subject to repurchase
rights
—
(
25
)
(410
)
Shares used to calculate basic net income (loss) per common
share
83,698
73,236
66,768
Add: Dilutive effect of non
-
participating securities
688
—
1,066
Shares used to calculate diluted net income (loss) per common
share
84,386
73,236
67,834
Basic net income (loss) per common share
$
0.78
$
(1.33
)
$
0.82
Diluted net income (loss) per common share
$
0.78
$
(1.33
)
$
0.81