EXTREME NETWORKS INC Earnings Per Share Disclosure
16. Net Income (Loss) Per Share
Basic net income (loss) per share is calculated by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted income (loss) per share is calculated by dividing net income (loss) by the weighted average number of shares of common stock used in the basic net income (loss) per share calculation plus the dilutive effect of any shares subject to repurchase, options and unvested RSUs.
The following table presents the calculation of basic and diluted net income (loss) per share (in thousands, except per share data):
|
|
Year Ended |
|
|||||||||
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|||
Net income (loss) |
|
$ |
(7,467 |
) |
|
$ |
(85,964 |
) |
|
$ |
78,074 |
|
Weighted-average shares used in per share calculation – basic |
|
|
132,331 |
|
|
|
129,288 |
|
|
|
129,473 |
|
Options to purchase common stock |
|
|
— |
|
|
|
— |
|
|
|
708 |
|
Restricted stock units |
|
|
— |
|
|
|
— |
|
|
|
3,468 |
|
Weighted-average shares used in per share calculation – diluted |
|
|
132,331 |
|
|
|
129,288 |
|
|
|
133,649 |
|
|
|
|
|
|
|
|
|
|
|
|||
Net income (loss) per share – basic and diluted |
|
|
|
|
|
|
|
|
|
|||
Net income (loss) per share – basic |
|
$ |
(0.06 |
) |
|
$ |
(0.66 |
) |
|
$ |
0.60 |
|
Net income (loss) per share – diluted |
|
$ |
(0.06 |
) |
|
$ |
(0.66 |
) |
|
$ |
0.58 |
|
Potentially dilutive shares of common stock from employee incentive plans are determined by applying the treasury stock method to the assumed exercise of outstanding stock options, the assumed vesting of outstanding RSUs, and the assumed issuance of common stock under the ESPP.
The following securities were excluded from the computation of net income (loss) per diluted share of common stock for the periods presented as their effect would have been anti-dilutive (in thousands):
|
|
|
|
|
Year Ended |
|
|
|
|
|||
|
|
June 30, |
|
|
June 30, |
|
|
June 30, |
|
|||
Options to purchase common stock |
|
|
841 |
|
|
|
1,126 |
|
|
|
— |
|
Restricted stock units |
|
|
5,419 |
|
|
|
5,946 |
|
|
|
153 |
|
Employee Stock Purchase Plan shares |
|
|
216 |
|
|
|
193 |
|
|
|
181 |
|
Total shares excluded |
|
|
6,476 |
|
|
|
7,265 |
|
|
|
334 |
|
Want the next EXTREME NETWORKS INC earnings per share disclosure the moment it drops?
Set a Sentinel and we'll alert you the moment EXTREME NETWORKS INC's next filing hits EDGAR. No credit card, your email never gets sold.
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.