NOTE 12: 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. During fiscal 2013, we issued 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 have 3.50% 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 $4.33 per share. Both the 4.50% and the 3.50% notes, if converted, would increase shares outstanding.

On June 23, 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 set forth the computation of basic and diluted net income (loss) per share (in thousands, except per-share data):

The computations of diluted net income (loss) per share for the periods presented excluded the following because the effect would have been antidilutive:

• For fiscal 2013, 2012 and 2011, 31.2 million, 31.2 million and 11.6 million weighted equivalent shares, respectively, of the 3.50% convertible subordinated notes were excluded. In addition, for fiscal 2013, 17.6 million weighted equivalent shares of the 4.50% notes were excluded.
   
• Stock options to purchase 17.3 million, 11.5 million and 10.4 million weighted average shares in fiscal 2013, 2012 and 2011 respectively, were excluded.
   
• Unvested restricted stock units of 10.1 million, 5.1 million and 49,000 weighted average shares for fiscal 2013, 2012 and 2011, respectively, were excluded.