Sirius XM Holdings Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Net Income (Loss) Per Share

Net Income (Loss) Per Share

9 Months Ended

Oct. 31, 2011

Net Income (Loss) Per Share [Abstract]

Net Income (Loss) Per Share

Basic net income (loss) per share is computed by dividing the net income (loss) by the weighted-average number of shares of common stock outstanding during the period.

Diluted net income per share is computed by giving effect to all potential shares of common stock, including stock options, restricted stock units, convertible preferred stock warrants and redeemable convertible preferred stock, to the extent dilutive. Basic and diluted net loss per share was the same for the three and nine months ended October 31, 2010 and the nine months ended October 31, 2011 as the inclusion of all potential common shares outstanding would have been anti-dilutive.

The following table sets forth the computation of historical basic and diluted net income (loss) per share (in thousands except per share amounts):


	Three Months Ended October 31,					Nine Months Ended October 31,
	2010			2011		2010			2011
Numerator
Net income (loss)	$	1,044		$	638	$	(328	)	$	(7,928	)
Accretion of redeemable convertible preferred stock		(72	)		—		(228	)		(110	)
Increase in cumulative dividends payable upon conversion of liquidation of redeemable convertible preferred stock		(2,746	)		—		(6,575	)		(3,648	)

Net income (loss) attributable to common stockholders	$	(1,774	)	$	638	$	(7,131	)	$	(11,686	)

Denominator
Weighted-average common shares outstanding used in computing basic net income (loss) per share		11,686			161,288		10,137			86,976

Net income (loss) per share, basic	$	(0.15	)	$	0.00	$	(0.70	)	$	(0.13	)

Effect of dilutive options		—			29,538		—			—
Effect of dilutive restricted stock units		—			42		—			—
Effect of dilutive warrants to purchase common stock		—			146		—			—
Weighted-average common shares outstanding used in computing diluted net income (loss) per share		11,686			191,014		10,137			86,976

Net income (loss) per share, diluted	$	(0.15	)	$	0.00	$	(0.70	)	$	(0.13	)

Net loss was increased by the cumulative dividends payable upon conversion or liquidation of redeemable convertible preferred shares earned during the period to arrive at net loss attributable to common stockholders for the three and nine months ended October 31, 2010. For the nine months ended October 31, 2011 dividends were accrued up through the conversion at the close of the IPO.

The following potential common shares outstanding were excluded from the computation of diluted net loss per share because including them would have been anti-dilutive (in thousands):


	Three Months Ended				Nine Months Ended
	October 31, 2010		October 31, 2011		October 31, 2010		October 31, 2011
Options to purchase common stock		32,412		1,930		32,412		36,598
Warrants to purchase convertible preferred stock		403		—		403		—
Warrants to purchase common stock		—		—		—		155
Restricted stock units		—		169		—		553
Convertible preferred stock		137,295		—		137,295		—

Total common stock equivalents		170,110		2,099		170,110		37,306