Annual report pursuant to Section 13 and 15(d)

Net Income (Loss) Per Share

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Net Income (Loss) Per Share
12 Months Ended
Dec. 31, 2013
Earnings Per Share [Abstract]  
Net Income (Loss) Per Share
Net Income (Loss) Per Share
Basic net income (loss) per common share is determined by dividing net income (loss) by the basic weighted average number of shares of common stock outstanding. Diluted net income (loss) per common share includes the potentially dilutive effect of common shares issued in connection with outstanding stock options using the treasury stock method and the dilutive impact of restricted stock units. Stock options and restricted stock units to acquire weighted average common shares of 1,921,000, 1,750,000 and 1,307,000 for the years ended December 31, 2013, 2012 and 2011, respectively, have been excluded from the computation of diluted weighted average shares outstanding for each respective period as their effect is anti-dilutive.
The Company calculates net income (loss) per share pursuant to the two-class method, which requires all outstanding unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) to be considered participating securities and included in the computation of basic and diluted earnings per share using the two-class method. The Company included in its computation of weighted average shares outstanding approximately 67,000 weighted average outstanding shares of unvested restricted stock deemed to be participating securities for the year ended December 31, 2013. The following table identifies the components of net income (loss) per basic and diluted share (in thousands, except for per share data):
 
December 31,
 
2013
 
2012
 
2011
Shares outstanding at end of period
8,674

 
8,654

 
10,204

Basic weighted average shares outstanding
8,691

 
9,971

 
9,674

Dilutive effect of stock options and restricted stock units

 

 
25

Total diluted weighted average shares outstanding
8,691

 
9,971

 
9,699

Net income (loss) attributable to Qumu
$
(9,694
)
 
$
(48,338
)
 
$
2,835

Basic net income (loss) per common share
$
(1.12
)
 
$
(4.85
)
 
$
0.29

Diluted net income (loss) per common share
$
(1.12
)
 
$
(4.85
)
 
$
0.29