8x8 2002 Annual Report Download - page 52

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The difference between net loss and comprehensive loss is due primarily to unrealized losses on short-
term investments
classified as available-for-
sale and foreign currency translation adjustments. Comprehensive loss is reflected in the
Consolidated Statements of Stockholders' Equity.
RECLASSIFICATIONS
Certain prior year balances have been reclassified to conform with the current year presentation.
NET LOSS PER SHARE
Basic net loss per share is computed by dividing net loss available to common stockholders (numerator) by the
weighted average number of vested, unrestricted common and Exchangeable Shares (see Note 9) outstanding during
the period (denominator). Net loss available to common stockholders was as follows (in thousands):
Year Ended March 31,
-------------------------------
2002 2001 2000
--------- --------- ---------
Net loss............................... $ (9,105) $ (74,399) $ (24,848)
Accretion of dividends on contingently
redeemable common stock.............. (25) -- --
--------- --------- ---------
Net loss available to common
stockholders......................... $ (9,130) $ (74,399) $ (24,848)
========= ========= =========
Due to net losses incurred for all periods presented, weighted average basic and diluted shares outstanding for the
respective periods are the same. The following equity instruments were not included in the computations of net loss per
share because the effect on the calculations would be anti-dilutive (in thousands):
Year Ended March 31,
-------------------------------
2002 2001 2000
--------- --------- ---------
Common stock options................... 9,900 7,732 4,174
Warrants............................... 701 701 701
Convertible subordinated debentures.... -- 638 638
Unvested restricted common stock....... -- 30 516
--------- --------- ---------
10,601 9,101 6,029
========= ========= =========
RECENT ACCOUNTING PRONOUNCEMENTS
In July 2001, the FASB issued SFAS No. 141, "Business Combinations," and SFAS No. 142, "Goodwill and Other
Intangible Assets." SFAS 141 requires all business combinations to be accounted for using the purchase method of
accounting, and also requires that certain intangible assets acquired in a business combination be recognized as assets
apart from goodwill. SFAS No. 141 was effective for all business combinations initiated after June 30, 2001. Under
SFAS No. 142, goodwill will no longer be amortized, but will be subject to annual impairment tests. Goodwill should
be assigned to an entity's reporting units, which, under SFAS No. 142, are defined as operating segments, or one level
below that. Furthermore, SFAS No. 142 requires purchased intangible assets other than goodwill to be amortized over
their useful lives, unless these lives are determined to be indefinite, and, upon adoption, requires a reassessment of the
useful lives previously assigned to its recognized intangible assets. In addition, if certain recognized intangible assets