RVBD » Topics » 2. NET INCOME (LOSS) PER COMMON SHARE

This excerpt taken from the RVBD 10-K filed Feb 23, 2009.

2.    NET INCOME (LOSS) PER COMMON SHARE

Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of vested common shares outstanding during the period. Diluted net income (loss) per common share is computed by giving effect to all potential dilutive common shares, including options, common stock subject to repurchase, warrants and convertible preferred stock.

 

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RIVERBED TECHNOLOGY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

 

The following table sets forth the computation of income (loss) per share:

 

     Year ended December 31,  

(in thousands, except per share data)

   2008    2007    2006  

Net income (loss)

   $ 10,601    $ 14,798    $ (15,845 )
                      

Weighted average common shares outstanding — basic

     70,757      68,020      26,977  

Dilutive effect of employee stock plans

     2,510      5,224       
                      

Weighted average common shares outstanding — diluted

     73,267      73,244      26,977  
                      

Basic net income (loss) per share

   $ 0.15    $ 0.22    $ (0.59 )
                      

Diluted net income (loss) per share

   $ 0.14    $ 0.20    $ (0.59 )
                      

The following weighted average outstanding options and RSUs were excluded from the computation of diluted net income (loss) per common share for the periods presented because including them would have had an anti-dilutive effect:

 

     Year ended December 31,

(in thousands)

   2008    2007    2006

Stock options and awards outstanding:

        

In-the-money awards

         35,728

Out-of-the-money awards

   8,642    3,440    157
              

Total potential shares of common stock excluded from the computation of earning per share

   8,642    3,440    35,885
              

Stock options outstanding with an exercise price lower than our average stock price for the periods presented, RSUs, and Plan Shares (“In-the-money awards”) that would otherwise have a dilutive effect under the treasury stock method, are excluded from the calculations of the diluted loss per share in periods with a loss since the effect in such periods would have been anti-dilutive.

Stock options outstanding with an exercise price higher than our average stock price for the periods presented, (“Out-of-the-money awards”) are excluded from the calculations of the diluted net income (loss) per share since the effect would have been anti-dilutive under the treasury stock method.

This excerpt taken from the RVBD 10-K filed Feb 15, 2008.

2.    NET INCOME (LOSS) PER COMMON SHARE

Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of vested common shares outstanding during the period. Diluted net income (loss) per common share is computed by giving effect to all potential dilutive common shares, including options, common stock subject to repurchase, warrants and convertible preferred stock.

The following table sets forth the computation of income (loss) per share:

 

     Year ended December 31,  

(in thousands, except per share data)

   2007    2006     2005  

Net income (loss)

   $ 14,798    $ (15,845 )   $ (17,426 )
                       

Weighted average common shares outstanding — basic

     68,020      26,977       9,401  

Dilutive effect of employee stock plans

     5,224             
                       

Weighted average common shares outstanding — diluted

     73,244      26,977       9,401  

Basic net income (loss) per share

   $ 0.22    $ (0.59 )   $ (1.85 )
                       

Diluted net income (loss) per share

   $ 0.20    $ (0.59 )   $ (1.85 )
                       

The following weighted average outstanding options, common stock subject to repurchase, convertible preferred stock and convertible preferred stock warrants were excluded from the computation of diluted net income (loss) per common share for the periods presented because including them would have had an anti-dilutive effect:

 

     Year ended December 31,

(in thousands)

   2007    2006    2005

Options to purchase common stock

   3,440    5,343    3,840

Common stock subject to repurchase

      2,372    4,273

Convertible preferred stock and warrants (as converted basis)

      28,170    35,837

 

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Table of Contents

RIVERBED TECHNOLOGY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

 

EXCERPTS ON THIS PAGE:

10-K
Feb 23, 2009
10-K
Feb 15, 2008

"2. NET INCOME (LOSS) PER COMMON SHARE" elsewhere:

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