EXHIBIT 11.1
STATEMENT REGARDING COMPUTATION OF EARNINGS PER SHARE
The Company reports both basic net income (loss) attributable to common stockholders per common share, which is based upon the weighted average number of common shares outstanding excluding returnable shares, and diluted net income (loss) attributable to common stockholders per common share, which is based on the weighted average number of common shares outstanding and dilutive potential common shares outstanding.
The following table sets forth the computation of basic and diluted net income (loss) attributable to common stockholders per share (in thousands, except per share amounts):
| Years Ended December 31, | ||||||||||||
| 2001 | 2002 | 2003 | ||||||||||
Numerator: | ||||||||||||
Net income (loss) from continuing operations | $ | (8,201 | ) | $ | 6,539 | $ | 9,355 | |||||
Less: Cumulative preferred stock dividends in arrears | (11,764 | ) | (12,941 | ) | (6,187 | ) | ||||||
Net income (loss) attributable to common stockholders | (19,965 | ) | (6,402 | ) | 3,168 | |||||||
Effect of dilutive securities | ||||||||||||
Add: Cumulative preferred stock dividends in arrears | — | — | 6,187 | |||||||||
Net income (loss) attributable to common stockholders with assumed conversions | $ | (19,965 | ) | $ | (6,402 | ) | $ | 9,355 | ||||
Denominator: | ||||||||||||
Weighted average common shares outstanding | 6,413 | 6,842 | 11,151 | |||||||||
Less: Unvested common shares subject to repurchase | (131 | ) | (58 | ) | (10 | ) | ||||||
Total shares; basic | 6,282 | 6,784 | 11,141 | |||||||||
Effect of dilutive securities | ||||||||||||
Add: Convertible preferred stock | — | — | 24,241 | |||||||||
Stock options and warrants | — | — | 6,261 | |||||||||
Unvested common shares subject to repurchase | — | — | 10 | |||||||||
Total shares; diluted | 6,282 | 6,784 | 41,653 | |||||||||
Net income (loss) per common share, basic | $ | (3.18 | ) | $ | (0.94 | ) | $ | 0.28 | ||||
Net income (loss) per common share, diluted | $ | (3.18 | ) | $ | (0.94 | ) | $ | 0.22 | ||||
The following outstanding mandatorily redeemable cumulative convertible preferred stock and warrants, common stock warrants, and common stock options were excluded from the computation of diluted net income per share as they had an antidilutive effect (in thousands):
| Years Ended December 31, | ||||||
| 2001 | 2002 | 2003 | ||||
Mandatorily redeemable cumulative convertible preferred stock (assuming conversion, using appropriate conversion ratio, to common shares) | 25,545 | 25,555 | — | |||
Mandatorily redeemable cumulative convertible preferred stock warrants (assuming conversion, using appropriate conversion ratio, to common shares) | 344 | 278 | — | |||
Common warrants | 524 | 417 | — | |||
Common stock options | 5,589 | 6,846 | 189 | |||
