Net Income (Loss) Per Share

The computations of basic and diluted net income (loss) per share are set forth below:



	Year Ended December 31,
	2018			2017			2016
	(In thousands, except per share data)
Numerator:
Net income (loss) attributable to common stockholders (numerator for basic net income per share)	$	(23,533	)	$	218,420		$	95,596
Net (income) loss allocated to participating securities	—			(215		)	(123		)
Numerator for basic net income (loss) per share	(23,533		)	218,205			95,473
Dividends on Series A preferred stock, declared and undeclared	—			7,000			7,000
Dividends on Series B preferred stock, declared and undeclared	—			8,436			8,436
Numerator for diluted net income (loss) per share	$	(23,533	)	$	233,641		$	110,909

Denominator: Denominator for basic net income (loss) per share - weighted average outstanding common shares	108,975			97,934			95,967
Dilutive effect of stock options	—			1,558			250
Dilutive effect of Performance RSUs	—			1,308			1,328
Dilutive effect of Series A preferred stock	—			10,602			10,602
Dilutive effect of Series B preferred stock	—			16,728			16,728
Denominator for diluted net income (loss) per share	108,975			128,130			124,875

Net income (loss) per share attributable to common stockholders - basic	$	(0.22	)	$	2.23		$	1.00
Net income (loss) per share attributable to common stockholders - diluted	$	(0.22	)	$	1.82		$	0.89

For the year ended December 31, 2018, 0.7 million unvested performance-based RSUs were not included in the computation of basic and diluted net income per share, as certain performance criteria have not been satisfied, and options to purchase 0.1 million shares of common stock were not included in the computation of basic and diluted net loss per share, as the effect would be anti-dilutive. Due to the Company’s net loss for the year ended December 31, 2018, all potential common stock equivalents were anti-dilutive. For the year ended December 31, 2018, 16.7 million as-if converted shares of the Series B Preferred Stock were not included in the computation of diluted net loss per share, as the effect would be anti-dilutive.

For the year ended December 31, 2017, 2.1 million unvested service-based RSUs were excluded from the computation of basic net income per share and not included in the computation of diluted net income per share, as the effect would be anti-dilutive, and 0.2 million unvested performance-based RSUs were not included in the computation of basic and diluted net income per share, as certain performance criteria have not been satisfied. For the year ended December 31, 2016, options to purchase 3.2 million shares of common stock were not included in the computation of diluted net income per share, as the effect would be anti-dilutive, and 1.4 million unvested service-based RSUs were excluded from the computation of basic net income per share and not included in the computation of diluted net income per share, as the effect would be anti-dilutive.

For the year ended December 31, 2018, $6.3 million in cumulative unpaid dividends to holders of the Series B Preferred Stock was not declared or accrued as a result of all cash dividends being suspended in connection with the amendments to the Credit Facility described in Note 7, but such amounts were deducted to arrive at net loss attributable to common stockholders. For the year ended December 31, 2017, $5.3 million and $6.3 million in cumulative unpaid dividends to holders of the Series A Preferred Stock and Series B Preferred Stock, respectively, were not declared or accrued as a result of all cash dividends being suspended, but such amounts were deducted to arrive at net income attributable to common stockholders.

Historical Timeline

Fiscal Year	Filed
2018	Feb 28, 2019	Showing above
2015	Feb 25, 2016

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.

Iridium Communications Inc. Earnings Per Share Disclosure

Historical Timeline

About Earnings Per Share Disclosures

Other Available Disclosures