Annual report pursuant to Section 13 and 15(d)

NET INCOME (LOSS) PER SHARE

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NET INCOME (LOSS) PER SHARE
 12 Months Ended
Mar. 31, 2016
Earnings Per Share [Abstract]  
NET INCOME (LOSS) PER SHARE
NET INCOME (LOSS) PER SHARE
Equity Instruments Outstanding
We have stock options and restricted stock units granted under various stock incentive plans that, upon exercise and vesting, respectively, would increase shares outstanding. We have 4.50% convertible subordinated notes which are convertible at the option of the holders at any time prior to maturity into shares of Quantum common stock at a conversion price of $1.65 per share. We also had 3.50% convertible subordinated notes outstanding as of March 31, 2015 and 2014, which were convertible at the option of the holders at any time prior to maturity into shares of Quantum common stock at a conversion price of $4.33 per share. Both the 4.50% and 3.50% notes, if converted, would increase shares outstanding.
In June 2009, we issued a warrant to EMC Corporation to purchase 10 million shares of our common stock at a $0.38 per share exercise price. Only in the event of a change of control of Quantum will this warrant vest and be exercisable. The warrant expires seven years from the date of issuance or three years after change of control, whichever occurs first. Due to these terms, no share-based compensation expense related to this warrant has been recorded to date.
Net Income (Loss) per Share
The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except per-share data):
 
For the year ended March 31,
 
2016
 
2015
 
2014
Numerator:
 
 
 
 
 
Net income (loss)
$
(74,683
)
 
$
16,760

 
$
(21,474
)
 
 
 
 
 
 
Denominator:
 
 
 
 
 
Weighted average shares:
 
 
 
 
 
Basic
262,730

 
254,665

 
247,024

Dilutive shares from stock plans
—

 
5,362

 
—

Diluted
262,730

 
260,027

 
247,024

 
 
 
 
 
 
Basic net income (loss) per share
$
(0.28
)
 
$
0.07

 
$
(0.09
)
Diluted net income (loss) per share
$
(0.28
)
 
$
0.06

 
$
(0.09
)


Dilutive and potentially dilutive common shares from stock incentive plans are determined by applying the treasury stock method to the assumed exercise of outstanding options and the assumed vesting of outstanding restricted stock units. The dilutive impact related to our convertible subordinated notes is determined by applying the if-converted method, which includes adding the related weighted average shares to the denominator and the related interest expense to net income.

The computations of diluted net income (loss) per share for the periods presented exclude the following because the effect would have been anti-dilutive:
•
For fiscal 2016, 2015 and 2014, there were 10.0 million, 29.0 million and 31.1 million, respectively, of weighted average shares related to the 3.50% convertible subordinated notes that were excluded. For fiscal 2016, 2015 and 2014, $1.8 million, $5.3 million and $5.7 million, respectively, of related interest expense was excluded.
•
For fiscal 2016, 2015 and 2014, there were 42.5 million of weighted average shares and $3.6 million of related interest expense related to the 4.50% convertible subordinated notes that were excluded
•
Stock options to purchase 4.5 million, 2.4 million and 12.8 million weighted average shares in fiscal 2016, 2015 and 2014, respectively, were excluded.
•
Unvested restricted stock units of 12.1 million, less than 0.1 million, and 11.0 million weighted average shares for fiscal 2016, 2015 and 2014, respectively, were excluded.