8x8 2011 Annual Report Download - page 54

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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.
2011 2010 2009
Numerator:
Net income (loss) available to common stockholders $ 6,494 $ 3,879 $ (2,500)
Denominator:
Common shares 63,087 62,861 62,317
Denominator for basic calculation 63,087 62,861 62,317
Employee stock options 2,564 318 -
Employee stock purchase plan - - -
Employee restricted purchase rights 222 83 -
Warrants - - -
Denominator for diluted calculation 65,873 63,262 62,317
Net income (loss) per share
Basic $ 0.10 $ 0.06 $ (0.04)
Diluted $ 0.10 $ 0.06 $ (0.04)
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):
2011 2010 2009
Common stock options 1,093 8,403 10,736
Stock purchase rights 33 1 100
Warrants - 1,786 5,445
1,126 10,190 16,281
Years Ended March 31,
2. INCOME TAXES
For the year ended March 31, 2011, 2010 and 2009, the Company recorded a provision for income taxes of $55,000, $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). The components of the consolidated provision
for income taxes for fiscal 2011, 2010 and 2009 consisted of the following (in thousands):
Current: 2011 2010 2009
Federal $ - $ (77) $ (72)
State 53 70 64
Foreign 2 10 53
$55 $ 3 $ 45
March 31,
52