Vistaprint 2008 Annual Report Download - page 77

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VISTAPRINT LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Years Ended June 30, 2008, 2007 and 2006
(in thousands, except share and per share data)
The following table sets forth the computation of basic and diluted net income per share (in
thousands, except share and per share amounts):
Year Ended June 30,
2008 2007 2006
Numerator:
Net income.................................................... $ 39,831 $ 27,143 $ 19,235
Allocation of net income:
Basic:
Accretion of preferred share dividends....................... — — (1,281)
Undistributed net income allocated to preferred
shareholders ............................................ — — (1,065)
Net income attributable to common shareholders ............. $ 39,831 $ 27,143 $ 16,889
Denominator:
Weighted-average common shares outstanding .................. 43,913,119 42,445,991 33,147,287
Weighted-average common shares upon conversion of convertible
preferred shares............................................. — — 5,618,395
Weighted-average common shares issuable upon exercise of
outstanding share options/RSUs .............................. 2,103,245 2,918,266 3,859,007
Shares used in computing diluted net income per common share . . 46,016,364 45,364,257 42,624,689
Calculation of net income per share:
Basic:
Net income attributable to common shareholders ............. $ 39,831 $ 27,143 $ 16,889
Weighted average common shares outstanding . . . ........... 43,913,119 42,445,991 33,147,287
Net income per common share ............................. $ 0.91 $ 0.64 $ 0.51
Diluted:
Net income attributable to common shareholders ............. $ 39,831 $ 27,143 $ 19,235
Shares used in computing diluted net income per common
share................................................... 46,016,364 45,364,257 42,624,689
Net income per common share ............................. $ 0.87 $ 0.60 $ 0.45
Share-Based Compensation
At June 30, 2008, the Company had three share-based compensation plans (see Note 8). The
Company grants share options for a fixed number of shares to employees and certain other individuals
with exercise prices as determined by the Board of Directors at the date of grant. Prior to July 1, 2005,
the Company had accounted for grants under its plans using the recognition and measurement
provisions of APB Opinion No. 25, Accounting for Stock Issued to Employees, and related
Interpretations, as permitted by SFAS No. 123, Accounting for Stock-Based Compensation
(“Statement 123”),and, as such, compensation cost had not been recognized on those grants.
Effective July 1, 2005, the Company adopted the fair value recognition provisions of SFAS No. 123(R),
Share-Based Payment (“Statement 123(R)”), using the modified-prospective-transition method. Under
this transition method, compensation cost recognized by the Company beginning July 1, 2005
includes: (a) compensation cost for all share-based payments granted between June 3, 2005, the date
73
Form 10-K