GSI TECHNOLOGY INC Earnings Per Share Disclosure
NOTE 3—NET LOSS PER COMMON SHARE
The Company uses the treasury stock method to calculate the weighted average shares used in computing diluted net loss per share. The following table sets forth the computation of basic and diluted net loss per share:
Year Ended March 31, | ||||||||||
2025 |
| 2024 |
| 2023 |
| |||||
(In thousands, except per share amounts) | ||||||||||
Net loss | $ | (10,639) |
| $ | (20,087) | $ | (15,977) | |||
Denominators: | ||||||||||
Weighted average shares—Basic |
| 25,498 | 25,144 | 24,595 | ||||||
Dilutive effect of employee stock options | — | — | — | |||||||
Dilutive effect of employee stock purchase plan options |
| — | — | — | ||||||
Weighted average shares—Dilutive |
| 25,498 |
| 25,144 |
| 24,595 | ||||
Net loss per common share—Basic | $ | (0.42) |
| $ | (0.80) | $ | (0.65) | |||
Net loss per common share—Diluted | $ | (0.42) |
| $ | (0.80) | $ | (0.65) | |||
The following shares of common stock (determined on a weighted average basis) were excluded from the computation of diluted net loss per common share as they had an anti-dilutive effect:
Year Ended March 31, | |||||||
| 2025 |
| 2024 |
| 2023 |
| |
(In thousands) | |||||||
Shares underlying options and ESPP shares | 7,551 | 7,930 | 8,531 | ||||
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.