Note 9. Earnings Per Share

Basic earnings per share (“EPS”) is calculated based on the weighted average shares outstanding during the period. Diluted earnings per share includes the dilutive effect of employee and director stock options. Stock options are considered dilutive whenever the exercise price is less than the average market price of the stock during the period

and antidilutive whenever the exercise price exceeds the average market price of the common stock during the period. All 2.1 million and 3.3 million employee stock options as of January 2, 2026 and January 3, 2025, respectively, and 1.5 million and 2.6 million restricted stock units as of January 2, 2026 and January 3, 2025, respectively, were excluded from the calculation of diluted earnings per share as they are antidilutive to the EPS calculation. The computation of basic and diluted EPS is as follows:

 

 

 

Fiscal Year Ended

 

(In thousands, except share and per share data)

 

January 2,
2026

 

 

January 3,
2025

 

Numerator:

 

 

 

 

 

 

Net loss attributable to Shimmick Corporation

 

$

(25,584

)

 

$

(124,748

)

Numerator for basic and diluted EPS

 

$

(25,584

)

 

$

(124,748

)

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

Denominator for basic EPS - weighted average shares

 

 

34,770

 

 

 

30,406

 

Effect of dilutive securities:

 

 

 

 

 

 

Employee stock options

 

 

 

 

 

 

Restricted stock units

 

 

 

 

 

 

Dilutive potential common shares

 

 

 

 

 

 

Denominator for diluted EPS - adjusted weighted average shares and assumed conversions

 

 

34,770

 

 

 

30,406

 

Basic EPS

 

$

(0.74

)

 

$

(4.10

)

Diluted EPS

 

$

(0.74

)

 

$

(4.10

)

Historical Timeline

Fiscal YearFiled
2026Mar 13, 2026Showing above
2025Mar 20, 2025
2023Mar 28, 2024

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.