Net Income Per Common Share Data
 9 Months Ended
Sep. 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 nine months ended September 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 nine-month periods ended September 30, 2011 and 2012 (in thousands, except share and per share amounts):

 

                                 
    Three Months Ended,
September 30,		     Nine Months Ended,
September 30,		  
    2011     2012     2011     2012  

Net income

   $ 1,485     $ 652     $ 2,188     $ 3,025  

Less: undistributed earnings allocated to preferred stockholders

     (1,292 )      —         (1,903 )      —    
   

 

 

    

 

 

    

 

 

    

 

 

  

Net income attributable to common stockholders

   $ 193     $ 652     $ 285     $ 3,025  
   

 

 

    

 

 

    

 

 

    

 

 

  

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

     2,318,666       27,329,106       2,006,739       23,728,120  
   

 

 

    

 

 

    

 

 

    

 

 

  

Basic net income per share attributable to common stockholders

   $ 0.08     $ 0.02     $ 0.14     $ 0.13  
   

 

 

    

 

 

    

 

 

    

 

 

  

Diluted net income per share attributable to common stockholders:

                                

Net income

   $ 193     $ 652     $ 285     $ 3,025  

Add: Undistributed earnings allocated to preferred stockholders

     1,292       —         1,903       —    
   

 

 

    

 

 

    

 

 

    

 

 

  

Net income attributable to common stockholders

   $ 1,485     $ 652     $ 2,188     $ 3,025  
   

 

 

    

 

 

    

 

 

    

 

 

  

Number of shares used in basic calculation

     2,318,669       27,329,106       2,006,739       23,728,120  

Weighted-average effect of dilutive securities

                                

Add:

                                

Conversion of preferred stock (as-if converted basis)

     17,395,136       —         17,395,136       2,602,923  

Stock options

     2,198,124       2,681,253       3,031,484       2,434,109  
   

 

 

    

 

 

    

 

 

    

 

 

  

Number of shares used in diluted calculation

     21,911,929       30,010,359       22,433,359       28,765,152  
   

 

 

    

 

 

    

 

 

    

 

 

  

Diluted net income per share attributable to common stockholders

   $ 0.07     $ 0.02     $ 0.10     $ 0.11  

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
September 30,		     Nine Months Ended
September 30,		  
     2011     2012     2011     2012  

Antidilutive equity awards

                                

Stock options

     —         132,850       2,054,748       132,850  
   

 

 

    

 

 

    

 

 

    

 

 

  

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