Net Income Per Common Share Data
 6 Months Ended
Jun. 30, 2012
Net Income Per Common Share Data [Abstract]  
Net Income Per Common Share Data

10. Net Income Per Common Share Data

Basic and diluted net income per common share for the three and six months ended June 30, 2011 is presented in conformity with the two-class method required for participating securities. The Company determined that its Series A, A-1, B, and C convertible preferred stock represented participating securities because they participated with common stock in dividends and unallocated income. Historically, the Company has not paid dividends. The holders of the Series A, A-1, B, and C convertible preferred stock did not have a contractual obligation to share in the losses of the Company. The Company considered its preferred stock to be participating securities and, in accordance with the two-class method, earnings allocated to preferred stock and the related number of outstanding shares of preferred stock have been excluded from the computation of basic and diluted net income per common share.

The following table presents the calculation of basic and diluted net income per share for the three- and six-month periods ended June 30, 2011 and 2012 (in thousands, except share and per share amounts):

 

                                 
    Three Months Ended,
June 30,		     Six Months Ended,
June 30,		  
    2011     2012     2011     2012  

Net income

   $ 592     $ 1,199     $ 703     $ 2,373  

Less: undistributed earnings allocated to preferred stockholders

     (541 )      —         (642 )      —    
   

 

 

    

 

 

    

 

 

    

 

 

  

Net income attributable to common stockholders

   $ 51     $ 1,199     $ 61     $ 2,373  
   

 

 

    

 

 

    

 

 

    

 

 

  

Weighted-average common shares used to compute net income per share attributable to common stockholders

     1,974,991       27,212,105       1,952,574       21,907,842  
   

 

 

    

 

 

    

 

 

    

 

 

  

Basic net income per share attributable to common stockholders

   $ 0.03     $ 0.04     $ 0.03     $ 0.11  
   

 

 

    

 

 

    

 

 

    

 

 

  

Diluted net income per share attributable to common stockholders:

                                

Net income

   $ 51     $ 1,199     $ 61     $ 2,373  

Add: Undistributed earnings allocated to preferred stockholders

     541       —         642       —    
   

 

 

    

 

 

    

 

 

    

 

 

  

Net income attributable to common stockholders

   $ 592     $ 1,199     $ 703     $ 2,373  
   

 

 

    

 

 

    

 

 

    

 

 

  

Number of shares used in basic calculation

     1,974,991       27,212,105       1,952,574       21,907,842  

Weighted-average effect of dilutive securities

                                

Add:

                                

Conversion of preferred stock (as-if converted basis)

     17,395,136       —         17,395,136       3,918,684  

Stock options

     3,083,681       2,380,003       3,040,112       2,435,356  
   

 

 

    

 

 

    

 

 

    

 

 

  

Number of shares used in diluted calculation

     22,453,808       29,592,108       22,387,822       28,261,882  
   

 

 

    

 

 

    

 

 

    

 

 

  

Diluted net income per share attributable to common stockholders

   $ 0.03     $ 0.04     $ 0.03     $ 0.08  
   

 

 

    

 

 

    

 

 

    

 

 

  

The following equivalent shares were excluded from the calculation of diluted net income per share because their effect would have been anti-dilutive for the periods presented:

 

                                 
    Three Months Ended
June 30,		     Six Months Ended
June 30,		  
    2011     2012     2011     2012  

Antidilutive equity awards

                                

Stock options

     267       86,500       58,767       86,500  
   

 

 

    

 

 

    

 

 

    

 

 

  

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