TeleNav 2010 Annual Report Download - page 86

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TELENAV, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Subsequent to our initial public offering, basic net income per share is calculated by dividing the net income
attributable to common stockholders by the weighted-average number of common shares outstanding for the
period. Diluted net income per share is computed by dividing the net income attributable to common
stockholders by the weighted-average number of common shares outstanding for the period, including potential
dilutive common shares assuming the dilutive effect of outstanding stock options and warrants using the
treasury-stock method.
As a result of the completion of our initial public offering during the fourth quarter of fiscal 2010, we
allocated income between the preferred and common stockholders on a pro-rata basis over the number of days of
the respective periods presented for purposes of determining the income attributable to common stockholders
under each of the methods noted above.
The following table presents the calculation of basic and diluted net income per share applicable to common
stockholders (in thousands, except per share amounts):
Fiscal Year Ended June 30,
2010 2009 2008
Net income applicable to common stockholders:
Net income ................................................... $41,410 $ 29,618 $ 4,607
Series E preferred cumulative dividends ............................ (954) (1,208) (1,207)
Undistributed earnings allocated to Series E preferred stockholders ...... (14,896) (12,691) (1,525)
Net income applicable to common stockholders ...................... $25,560 $ 15,719 $ 1,875
Shares used in computing net income per share applicable to common
stockholders:
Basic:
Weighted average common shares used in computing basic net
income per share ........................................ 15,569 11,273 11,173
Diluted:
Weighted average common shares used in computing basic net
income per share ........................................ 15,569 11,273 11,173
Add weighted average effect of dilutive securities:
Stock options ......................................... 3,115 2,468 1,716
Common stock warrants ................................ 10 — —
Conversion of convertible preferred stock .................. 12,139 13,983 13,983
Weighted average common shares used in computing
diluted net income per share ....................... 30,833 27,724 26,872
Net income per share applicable to common stockholders:
Basic ............................................... $ 1.64 $ 1.39 $ 0.17
Diluted .............................................. $ 0.83 $ 0.57 $ 0.07
83