Quarterly report pursuant to Section 13 or 15(d)

Computation Of Net Income (Loss) Per Share Of Common Stock

v2.4.0.8
Computation Of Net Income (Loss) Per Share Of Common Stock
3 Months Ended
Mar. 31, 2014
Earnings Per Share [Abstract]  
Computation Of Net Loss Per Share Of Common Stock
Computation of Net Loss Per Share of Common Stock
Basic net loss per common share is determined by dividing net loss by the basic weighted average number of shares of common stock outstanding. Diluted net 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 1,773,000 and 1,979,000 for the three months ended March 31, 2014 and 2013, respectively, have been excluded from the computation of diluted weighted average common shares 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 83,000 and 118,000 weighted average outstanding shares of unvested restricted stock deemed to be participating securities for the three months ended March 31, 2014 and 2013, respectively. The following table identifies the components of net income (loss) per basic and diluted share (in thousands, except for per share data):
 
Three Months Ended 
 March 31,
 
2014
 
2013
Shares outstanding at end of period
8,684

 
8,667

Basic weighted average shares outstanding
8,700

 
8,679

Dilutive effect of stock options and restricted stock units

 

Total diluted weighted average shares outstanding
8,700

 
8,679

Net loss attributable to Qumu
$
(3,928
)
 
$
(3,977
)
Net loss per basic and diluted share
$
(0.45
)
 
$
(0.46
)