8x8 2010 Annual Report Download - page 58

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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.
2010 2009 2008
N
umerator:
N
et income (loss) available to common stockholders $ 3,879 $ (2,500) $ 30
Denominator:
Common shares 62,861 62,317 61,897
Denominator for basic calculation 62,861 62,317 61,897
Employee stock options 318 - 133
Employee stock purchase plan - - 36
Employee restricted purchase rights 83 - -
Warrants - - 46
Denominator for diluted calculation 63,262 62,317 62,112
N
et income (loss) per share
Basic $ 0.06 $ (0.04) $ 0.00
Diluted $ 0.06 $ (0.04) $ 0.00
(in thousands, except per share amounts)
Years Ended March 31,
The following shares attributable to outstanding stock options and warrants were excluded from the calculation of diluted
earnings per share because their inclusion would have been anti dilutive (in thousands):
2010 2009 2008
Common stock options 8,403 10,736 9,038
Stock purchase rights 1 100 -
Warrants 1,786 5,445 7,838
10,190 16,281 16,876
Years Ended March 31,
2. INCOME TAXES
For the year ended March 31, 2010 and 2009, the Company recorded a provision for income taxes of $3,000 and $45,000,
respectively, which was attributable to state tax in several states and foreign tax, offset by federal refund in lieu of bonus
depreciation (in accordance with the Economic Stimulus Act of 2010). There was no income tax provision for the year ended
March 31, 2008.The components of the consolidated provision for income taxes for fiscal 2010 and 2009 consisted of the
following (in thousands):
Current: 2010 2009 2008
Federal $ (77) $ (72) $ -
State 70 64 -
Foreign 10 53 -
$3 $ 45 $ -
March 31,
56