8x8 2003 Annual Report Download - page 53

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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 2) outstanding during
the period (denominator). Net loss available to common stockholders was as follows (in thousands):
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):
RECENT ACCOUNTING PRONOUNCEMENTS
On October 3, 2001, the Financial Accounting Standards Board (FASB) issued SFAS No. 144, "Accounting for the
Impairment or Disposal of Long-Lived Assets.” SFAS No. 144 supercedes SFAS No. 121, "Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of." SFAS No. 144 applies to all
long-lived assets (including discontinued operations) and consequently amends Accounting Principles Board
Opinion No. 30. SFAS No. 144 develops one accounting model for long-lived assets that are to be disposed of by
sale and requires that long-lived assets that are to be disposed of by sale be measured at the lower of book value or
fair value less cost to sell. Additionally, SFAS No. 144 expands the scope of discontinued operations to include all
components of an entity with operations that (i) can be distinguished from the rest of the entity, and (ii) will be
eliminated from the ongoing operations of the entity in a disposal transaction. The Company adopted SFAS No. 144
in the first quarter of fiscal 2003, and its adoption did not have a material impact on the Company’s results of
operations and financial condition.
In June 2002, the FASB issued SFAS No. 146, “Accounting for Costs Associated with Exit or Disposal Activities,”
which addresses accounting for restructuring and similar costs. SFAS No. 146 supercedes previous accounting
guidance, principally Emerging Issues Task Force Issue (EITF) No. 94-3. SFAS No. 146 requires that a liability for
costs associated with an exit or disposal activity be recognized when the liability is incurred. Under EITF No. 94-3,
a liability for an exit cost was recognized at the date of the entity's commitment to an exit plan. SFAS No. 146 also
requires that the liability be initially measured and recorded at fair value. SFAS No. 146 was effective for exit or
disposal activities that are initiated after December 31, 2002. The Company adopted SFAS No. 146 in the fourth
quarter of fiscal 2003, and its adoption did not have a material impact on its results of operations and financial
Years Ende d Marc h 3 1 ,
2003 2002 2001
N
et loss..............................................................................
.
$ (11,403) $ (9,105) $ (74,399)
Accretion of dividends on contingently
redeemable common stock............................................
.
-- (25) --
Net loss available to common
stockholders.................................................................... $ (11,403) $ (9,130) $ (74,399)
Years Ende d Marc h 3 1 ,
2003 2002 2001
Common stock options.................................................... 7,615 9,900 7,732
Warrants............................................................................
.
-- 701 701
Convertible subordinated debentures..........................
.
-- -- 638
Unvested restricted common stock...............................
.
-- -- 30
7,615 10,601 9,101