8x8 2009 Annual Report Download - page 61

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In December 2007, the FASB issued SFAS No. 141(Revised 2007), “Business Combinations” (“SFAS No. 141(R)”). SFAS
No. 141(R) significantly changes the accounting for business combinations in a number of areas including the treatment of
contingent consideration, acquired contingencies, transaction costs, in-process research and development and restructuring
costs. In addition, under SFAS No. 141(R), changes in an acquired entity’ s deferred tax assets and uncertain tax positions after
the measurement period will impact income tax expense. SFAS No. 141(R) applies prospectively to business combinations for
which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15,
2008. Earlier adoption is prohibited. The Company will adopt this pronouncement in the first quarter of fiscal 2010 and does
not expect the adoption of SFAS No. 141(R) will have a material impact on its consolidated results of operations and financial
condition.
In December 2007, the FASB issued SFAS No. 160, “Noncontrolling Interest in Consolidated Financial Statements an
Amendment of ARB No. 51” (“SFAS No. 160”), which establishes new accounting and reporting standards for the
noncontrolling interest in a subsidiary, changes in a parent’ s ownership interest in a subsidiary and the deconsolidation of a
subsidiary. SFAS No. 160 is effective for fiscal years beginning on or after December 15, 2008. Earlier adoption is prohibited.
The Company will adopt this pronouncement in the first quarter of fiscal 2010 and does not expect the adoption of SFAS No.
160 will have a material impact on its consolidated results of operations and financial condition.
COMPREHENSIVE INCOME (LOSS)
Comprehensive income (loss), as defined, includes all changes in equity (net assets) during a period from non-owner sources.
The difference between net income (loss) and comprehensive income (loss) is due to unrealized gains or losses on investments
classified as available-for-sale. Comprehensive income (loss) is reflected in the consolidated statements of stockholders' equity.
NET INCOME (LOSS) PER SHARE
Basic net income (loss) per share is computed by dividing net income (loss) available to common stockholders (numerator) by
the weighted average number of vested, unrestricted common shares outstanding during the period (denominator). Diluted net
income per share is computed on the basis of the weighted average number of shares of common stock plus the effect of
dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common
shares include outstanding stock options, shares to be issued under the employee stock purchase plan and warrants.
2009 2008 2007
Numerator:
Net income (loss) available to common stockholders $ (2,500) $ 30 $ (9,930)
Denominator:
Common shares 62,317 61,897 61,365
Denominator for basic calculation 62,317 61,897 61,365
Employee stock options - 133 -
Employee stock purchase plan - 36 -
Warrants - 46 -
Denominator for diluted calculation 62,317 62,112 61,365
Net income (loss) per share
Basic $ (0.04) $ 0.00 $ (0.16)
Diluted $ (0.04) $ 0.00 $ (0.16)
Years Ended March 31,
59