SAN MATEO, Calif., Oct. 30, 2012 (GLOBE NEWSWIRE) -- Epocrates, Inc. (Nasdaq:EPOC), a leading physician platform for clinical content, practice tools and health industry engagement, today reported its third quarter 2012 results.
"We are pleased with our performance for the quarter," said Andy Hurd, President, Chief Executive Officer and interim Chief Financial Officer of Epocrates. "We take great pride in serving as the trusted arbiter of information and resources for the one million-plus healthcare professionals in our network. We are excited about the opportunities to deepen that relationship by adding capabilities and new partnerships that help us grow our business."
Third Quarter 2012 Results
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Revenue for the quarter ended September 30, 2012 was $26.0 million, a decrease of $0.6 million from the quarter ended September 30, 2011.
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Net loss was $0.6 million for the quarter ended September 30, 2012, versus net income of $0.7 million for the quarter ended September 30, 2011. Net loss per share was $0.02 for the third quarter of 2012 compared to net income per diluted share of $0.03 for the third quarter of 2011.
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Loss from continuing operations was $1.0 million in the third quarter of 2012 versus income from continuing operations of $0.7 million for the third quarter of 2011, with such decrease primarily due to increased operating expenses as well as decreased revenues and increased cost of revenues. Loss from continuing operations per share was $0.04 for the third quarter of 2012 compared to income from continuing operations per diluted share of $0.03 for the third quarter of 2011. On a non-GAAP basis, net income from continuing operations per diluted share was $0.02 for the quarter ended September 30, 2012, and income from continuing operations per diluted share was $0.07 for the quarter ended September 30, 2011.
- Earnings before interest, taxes, non-cash and other items ("adjusted EBITDA"), as defined in the GAAP to non-GAAP reconciliation provided later in this release, was $2.0 million for the three months ended September 30, 2012, compared to adjusted EBITDA of $3.9 million for the same period in the prior year. The decrease in adjusted EBITDA for the third quarter of 2012 was primarily attributable to increased operating expenses as well as decreased revenues and increased cost of revenues compared to the third quarter of 2011.
Balance Sheet Highlight
- Cash, cash equivalents and short-term investments totaled $79.1 million as of September 30, 2012.
Outlook for Full Year 2012
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Revenue is re-affirmed to be in the range of $105 to $115 million.
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Adjusted EBITDA is re-affirmed to be $9.0 to $12.0 million, or 9% to 10% of revenue.
- Net loss is re-affirmed to be in the range of $2.3 to $4.3 million, and net loss per share is re-affirmed to be between $0.09 and $0.16 based on approximately 26.0 million shares outstanding.
Earnings Call Information
Epocrates will host a conference call today beginning at 4:15 p.m. ET to discuss its third quarter 2012 results, followed by a question and answer session.
To participate in Epocrates' live conference call, please dial (877) 398-9481 (domestic) or (760) 298-5095 (international) using conference code 35371217, or visit the Investor Relations section of the company's website at www.epocrates.com. A replay of the call will be available at the same address.
About Epocrates, Inc.
Epocrates, Inc. (Nasdaq:EPOC) is recognized for developing the top medical application among U.S. physicians for clinical content, practice tools and health industry engagement at the point of care. Epocrates has established a loyal network of more than one million healthcare professionals, including 50 percent of U.S. physicians, who routinely use its intuitive solutions to help streamline workflow and improve patient care. The company also facilitates the delivery of valuable content and tools between partnering organizations and its members. For more information, please visit www.epocrates.com/company. ;
Epocrates is a trademark of Epocrates, Inc., registered in the U.S. and other countries.
The Epocrates, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=10943
All statements contained in this press release, other than statements of historical fact, are forward-looking statements intended to qualify for the safe harbors from liability established by the Private Securities Litigation Reform Act of 1995. Forward-looking statements by their nature address matters that are, to different degrees, uncertain. The forward-looking statements include uncertainties and risks including, among others: the inability to retain and expand the Epocrates physician network at the rate expected; unexpected delays in delivering new products; lack of market acceptance of new products; the inability to maintain product quality and brand credibility; the inability to keep up with the technological advances within the marketplace and by competitors; the inability to realize estimates and guidance made by management with respect to Epocrates' financial results; and other factors, including general economic conditions and regulatory developments not within Epocrates' control. The factors discussed herein and expressed from time to time in Epocrates' filings with the Securities and Exchange Commission could cause actual results and developments to be materially different from those expressed in or implied by such statements. The forward-looking statements are made only as of the date of this press release, and except as required by law, Epocrates undertakes no obligation to publicly update its forward-looking statements to reflect subsequent events or circumstances. You should review the Epocrates' filings, especially the risk factors contained in its most recent filings with the Securities and Exchange Commission on Form 10-K and Form 10-Q.
| EPOCRATES, INC. | ||||
| CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - UNAUDITED | ||||
| (in thousands, except per share data) | ||||
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||
| 2012 | 2011 | 2012 | 2011 | |
| Subscription revenues | $ 5,045 | $ 5,143 | $ 14,472 | $ 17,446 |
| Interactive services revenues | 20,980 | 21,452 | 65,908 | 66,186 |
| Total revenues, net | 26,025 | 26,595 | 80,380 | 83,632 |
| Cost of subscription revenues | 1,782 | 1,597 | 5,480 | 5,440 |
| Cost of interactive services revenues | 9,021 | 8,686 | 26,559 | 24,001 |
| Total cost of revenues | 10,803 | 10,283 | 32,039 | 29,441 |
| Gross profit | 15,222 | 16,312 | 48,341 | 54,191 |
| Operating expenses: | ||||
| Sales and marketing | 6,871 | 6,050 | 19,664 | 19,650 |
| Research and development | 5,369 | 5,312 | 15,497 | 15,386 |
| General and administrative | 4,113 | 4,259 | 14,333 | 16,424 |
| Facilities exit costs | — | — | — | 618 |
| Gain on settlement and change in fair value of contingent consideration | — | — | — | (5,933) |
| Total operating expenses | 16,353 | 15,621 | 49,494 | 46,145 |
| (Loss) income from operations | (1,131) | 691 | (1,153) | 8,046 |
| Interest income | 11 | 15 | 22 | 66 |
| Other income (expense), net | — | 3 | (1) | 182 |
| (Loss) income before income taxes | (1,120) | 709 | (1,132) | 8,294 |
| Benefit from (provision for) income taxes | 104 | (4) | 392 | (3,154) |
| (Loss) income from continuing operations | (1,016) | 705 | (740) | 5,140 |
| Gain (loss) from discontinued operations, net of tax | 408 | (19) | (1,705) | (2,186) |
| Net (loss) income | (608) | 686 | (2,445) | 2,954 |
| Unrealized gains (losses) on available-for-sale securities, net | 4 | (3) | (1) | (3) |
| Comprehensive (loss) income | (604) | 683 | (2,446) | 2,951 |
| Less: 8% dividend on preferred stock | — | — | — | 294 |
| Net (loss) income attributable to common stockholders - basic and diluted | $ (608) | $ 686 | $ (2,445) | $ 2,660 |
| Net (loss) income per share - basic | ||||
| Continuing operations | $ (0.04) | $ 0.03 | $ (0.03) | $ 0.22 |
| Discontinued operations, net of tax | 0.02 | — | (0.07) | (0.10) |
| Net (loss) income per share attributable to common stockholders | $ (0.02) | $ 0.03 | $ (0.10) | $ 0.12 |
| Net (loss) income per share - diluted | ||||
| Continuing operations | $ (0.04) | $ 0.03 | $ (0.03) | $ 0.21 |
| Discontinued operations, net of tax | 0.02 | — | (0.07) | (0.10) |
| Net (loss) income per share attributable to common stockholders | $ (0.02) | $ 0.03 | $ (0.10) | $ 0.11 |
| Weighted average common shares outstanding - basic | 24,808 | 23,644 | 24,668 | 21,655 |
| Weighted average common shares outstanding - diluted | 25,123 | 24,926 | 25,049 | 23,636 |
| The accounts below include stock-based compensation of the following amounts: | ||||
| Cost of revenues | 71 | (7) | 170 | 144 |
| Sales and marketing | 186 | (8) | 577 | 1,109 |
| Research and development | 191 | 28 | 554 | 558 |
| General and administrative | 447 | 1,114 | 2,240 | 3,646 |
| Discontinued operations | — | — | 74 | — |
| EPOCRATES, INC. | ||
| CONDENSED CONSOLIDATED BALANCE SHEETS - UNAUDITED | ||
| (in thousands) | ||
| September 30, 2012 | December 31, 2011 | |
| Assets | ||
| Current assets | ||
| Cash and cash equivalents | $ 62,218 | $ 75,326 |
| Short-term investments | 16,915 | 9,897 |
| Accounts receivable, net | 22,404 | 22,748 |
| Deferred tax asset | 7,390 | 7,390 |
| Prepaid expenses and other current assets | 4,757 | 3,218 |
| Total current assets | 113,684 | 118,579 |
| Property and equipment, net | 8,022 | 7,283 |
| Deferred tax asset, long-term | 482 | 1,280 |
| Goodwill | 17,959 | 17,959 |
| Other intangible assets, net | 3,765 | 6,771 |
| Other assets | 357 | 352 |
| Total assets | $ 144,269 | $ 152,224 |
| Liabilities and Stockholders' Equity | ||
| Current liabilities | ||
| Accounts payable | $ 1,522 | $ 3,282 |
| Deferred revenue | 42,192 | 46,429 |
| Other accrued liabilities | 7,848 | 9,600 |
| Total current liabilities | 51,562 | 59,311 |
| Deferred revenue, less current portion | 6,004 | 8,088 |
| Other liabilities | 1,470 | 1,893 |
| Total liabilities | 59,036 | 69,292 |
| Stockholders' equity | ||
| Common stock at par | 25 | 24 |
| Additional paid-in capital | 133,982 | 129,238 |
| Accumulated other comprehensive loss | (1) | (2) |
| Accumulated deficit | (48,773) | (46,328) |
| Total stockholders' equity | 85,233 | 82,932 |
| Total liabilities and stockholders' equity | $ 144,269 | $ 152,224 |
| EPOCRATES, INC. | ||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED | ||
| (in thousands) | ||
|
Nine Months Ended September 30, |
||
| 2012 | 2011 | |
| Cash flows from operating activities: | ||
| Net (loss) income | $ (2,445) | $ 2,954 |
| Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||
| Stock-based compensation | 3,615 | 5,457 |
| Depreciation and amortization | 2,953 | 3,245 |
| Amortization of intangible assets | 3,006 | 3,112 |
| Loss on write-off of property and equipment | 121 | 99 |
| Allowance for doubtful accounts and sales returns reserve | (16) | (36) |
| Facilities exit costs | — | 618 |
| Gain on settlement and change in fair value of contingent consideration | — | (7,696) |
| Changes in assets and liabilities, net of effect of acquisitions: | ||
| Accounts receivable | 360 | 3,851 |
| Deferred tax asset, current and noncurrent | 222 | (251) |
| Prepaid expenses and other assets | (1,544) | 1,414 |
| Accounts payable | (1,777) | (997) |
| Deferred revenue | (6,321) | (1,468) |
| Other accrued liabilities and other payables | (2,250) | (2,684) |
| Net cash (used in) provided by operating activities | (4,076) | 7,618 |
| Cash flows from investing activities: | ||
| Purchase of property and equipment | (3,647) | (7,944) |
| Purchase of short-term investments | (14,497) | (18,839) |
| Sale of short-term investments | — | 804 |
| Maturity of short-term investments | 7,480 | 17,550 |
| Net cash used in investing activities | (10,664) | (8,429) |
| Cash flows from financing activities: | ||
| Net cash proceeds from issuance of common stock | — | 64,189 |
| Payment and settlement of contingent consideration | — | (6,871) |
| Payment of accrued dividends on Series B mandatorily redeemable convertible preferred stock | — | (29,586) |
| Proceeds from exercise of common stock options | 1,632 | 2,353 |
| Net cash provided by financing activities | 1,632 | 30,085 |
| Net (decrease) increase in cash and cash equivalents | (13,108) | 29,274 |
| Cash and cash equivalents at beginning of period | 75,326 | 35,987 |
| Cash and cash equivalents at end of period | $ 62,218 | $ 65,261 |
Use of Non-GAAP Financial Measures
To supplement Epocrates' consolidated financial statements presented on a U.S. generally accepted accounting principles ("GAAP") basis, Epocrates uses non-GAAP measures of adjusted EBITDA, gross profit, gross margin, net income (loss) and net income (loss) per share, which are adjusted to exclude certain costs, expenses, gains and losses Epocrates believes are appropriate to enhance an overall understanding of its past and future financial performance. These adjustments to current period GAAP results are made with the intent of providing both management and investors a more complete understanding of Epocrates' underlying operational results and trends and its marketplace performance. In addition, these adjusted nonGAAP results are among the information management uses as a basis for planning and forecasting for future periods. The presentation of this additional information is not meant to be considered in isolation or as a substitute for results prepared in accordance with GAAP.
Adjusted EBITDA is not a measure of liquidity calculated in accordance with GAAP and should be viewed as a supplement to, not a substitute for, results of operations presented on a GAAP basis. Adjusted EBITDA does not purport to represent cash flow provided by, or used in, operating activities as defined by GAAP. Epocrates' Condensed Consolidated Statements of Cash Flows presents its cash flow activity in accordance with GAAP. Furthermore, adjusted EBITDA is not necessarily comparable to similarly-titled measures reported by other companies.
Epocrates believes adjusted EBITDA, adjusted net income, adjusted net income (loss) per share, adjusted gross profit and adjusted gross margin are used by and are useful to investors and other users of its financial statements in evaluating its operating performance because it provides them with additional tools to compare business performance across companies and across periods. Epocrates believes that:
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EBITDA is widely used by investors to measure a company's operating performance without regard to such items as non-recurring items, interest (income) expense, taxes, depreciation and amortization, which can vary substantially from company to company depending upon accounting methods and book value of assets, capital structure and the method by which assets were acquired;
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investors commonly adjust EBITDA information to eliminate the effect of stockbased compensation expenses and other charges, which can vary widely from company to company and impair comparability; and
- adjusted net income, adjusted net income (loss) per share and adjusted gross profit/gross margin eliminate the effect of non-recurring and non-cash charges, which can vary widely from company to company and impair comparability year over year and across companies.
Epocrates management uses adjusted EBITDA, adjusted net income, adjusted net income (loss) per share, adjusted gross profit and adjusted gross margin:
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as measures of operating performance to assist in comparing performance from period to period on a consistent basis;
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as measures for planning and forecasting overall expectations and for evaluating actual results against such expectations; and
- in communications with the Board of Directors, stockholders, analysts and investors concerning Epocrates' financial performance.
Additionally, Epocrates management uses adjusted EBITDA as a significant performance measurement included in its bonus plan.
The tables that follow set forth a reconciliation of net (loss) income to adjusted net income and adjusted EBITDA. These tables also show a reconciliation of gross profit and gross margin from a GAAP to a non-GAAP basis.
| EPOCRATES, INC. | |||||||
| RECONCILIATION OF NET (LOSS) INCOME TO ADJUSTED NET INCOME AND | |||||||
| ADJUSTED EBITDA | |||||||
| (dollars in thousands) | |||||||
| Three Months Ended September 30, | |||||||
| 2012 | 2011 | ||||||
|
Earnings |
Gross Profit |
Gross Margin |
Earnings |
Gross Profit |
Gross Margin |
||
| Net (loss) income, as reported | $ (608) | $ 15,222 | 58.5% | $ 686 | $ 16,312 | 61.3% | |
| Gain (loss) from discontinued operations, net | 408 | (19) | |||||
| Net (loss) income from continuing operations | $ (1,016) | $ 705 | |||||
| Add: Non-recurring and non-cash charges (income) | |||||||
| Amortization of purchased intangible assets related to core business * | 997 | 997 | 1,020 | 1,020 | |||
| Stock-based compensation * | 895 | 71 | 1,127 | (7) | |||
| Other * (1) | 191 | 119 | |||||
| Add: Tax adjustment (2) | (460) | (1,246) | |||||
| Net income from continuing operations, as adjusted | $ 607 | $ 16,290 | 62.6% | $ 1,725 | $ 17,325 | 65.1% | |
| Gain (loss) from discontinued operations, net | 408 | (19) | |||||
| Net income, as adjusted | $ 1,015 | $ 1,706 | |||||
| Net (loss) income, as reported | $ (608) | $ 686 | |||||
| Gain (loss) from discontinued operations, net | 408 | (19) | |||||
| Net (loss) income from continuing operations | $ (1,016) | $ 705 | |||||
| Add: (Income) expenses unrelated to core business activities | |||||||
| Interest income | (11) | (15) | |||||
| (Benefit from) provision for income taxes | (104) | 4 | |||||
| Add: Non-recurring and non-cash charges | |||||||
| Depreciation and amortization expense (including intangible assets) related to core business | 1,996 | 1,968 | |||||
| Stock-based compensation | 895 | 1,127 | |||||
| Other | 191 | 119 | |||||
| Adjusted EBITDA | $ 1,951 | $ 3,908 | |||||
| (1) For the three months ended September 30, 2012, represents severance payments. For the three months ended September 30, 2011, represents legal expenses associated with the SEC subpoena and severance payments. | |||||||
| (2) 2012 Non-GAAP net income reflects a provision for income tax rate of 37%, which is our current projected long-term rate. 2011 Non-GAAP net income reflects a provision for income tax rate of 42%, which was our projected long-term rate in fiscal year 2011. | |||||||
| Nine Months Ended September 30, | ||||||
| 2012 | 2011 | |||||
|
Earnings |
Gross Profit |
Gross Margin |
Earnings |
Gross Profit |
Gross Margin |
|
| Net (loss) income, as reported | $ (2,445) | $ 48,341 | 60.1% | $ 2,954 | $ 54,191 | 64.8% |
| Loss from discontinued operations, net | (1,705) | (2,186) | ||||
| Net (loss) income from continuing operations | $ (740) | $ 5,140 | ||||
| Less: accrued dividend on Series B plus 8% dividend on Series A and Series C stock | (294) | |||||
| Net income from continuing operations attributable to common stockholders | $ 4,846 | |||||
| Add: Non-recurring and non-cash charges (income) | ||||||
| Amortization of purchased intangible assets related to core business * | 3,006 | 3,006 | 3,076 | 3,076 | ||
| Stock-based compensation * | 3,541 | 170 | 5,457 | 144 | ||
| Gain on settlement and change in fair value of contingent consideration *(1) | -- | -- | (5,933) | -- | ||
| Other *(2) | 667 | 1,833 | ||||
| Add: Tax adjustment(3) | (2,642) | (2,191) | ||||
| Net income from continuing operations, as adjusted | $ 3,832 | $ 51,517 | 64.1% | $ 7,088 | $ 57,411 | 68.6% |
| Loss from discontinued operations, net | (1,705) | (2,186) | ||||
| Net income, as adjusted | $ 2,127 | $ 4,902 | ||||
| Net (loss) income, as reported | $ (2,445) | $ 2,954 | ||||
| Loss from discontinued operations, net | (1,705) | (2,186) | ||||
| Net (loss) income from continuing operations | $ (740) | $ 5,140 | ||||
| Add: (Income) expenses unrelated to core business activities | ||||||
| Interest income | (22) | (66) | ||||
| (Benefit from) provision for income taxes | (392) | 3,154 | ||||
| Add: Non-recurring and non-cash charges (income) | ||||||
| Depreciation and amortization expense (including intangible assets) related to core business | 5,959 | 5,977 | ||||
| Stock-based compensation | 3,541 | 5,457 | ||||
| Gain on settlement and change in fair value of contingent consideration(1) | -- | (5,933) | ||||
| Other(2) | 667 | 1,833 | ||||
| Adjusted EBITDA | $ 9,013 | $ 15,562 | ||||
| (1) Includes a $6.4 million gain recognized during the second quarter of 2011 related to the settlement of the contingent consideration liability with the sellers of MedCafe, Inc., a company we acquired in 2010. | ||||||
| (2) For the nine months ended September 30, 2012, represents severance payments and retention bonuses. For the nine months ended September 30, 2011, represents $0.9 million in legal expenses associated with the SEC subpoena, $0.6 million in facilities exit costs and $0.3 million in severance payments. | ||||||
| (3) 2012 Non-GAAP net income reflects a provision for income tax rate of 37%, which is our current projected long-term rate. 2011 Non-GAAP net income reflects a provision for income tax rate of 42%, which was our projected long-term rate in fiscal year 2011. The calculation of these adjustments is as follows: | ||||||
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||
| 2012 | 2011 | 2012 | 2011 | |
| (Loss) income before income taxes | $ (1,120) | $ 709 | $ (1,132) | $ 8,294 |
| Add: Non-GAAP adjustments (indicated by *) | 2,083 | 2,266 | 7,214 | 4,433 |
| Non-GAAP income before income taxes | 963 | 2,975 | 6,082 | 12,727 |
| Effective income tax rate | 37% | 42% | 37% | 42% |
| Non-GAAP tax provision (Non-GAAP income before income taxes multiplied by the effective income tax rate) | 356 | 1,250 | 2,250 | 5,345 |
| (Benefit from) provision for income taxes | (104) | 4 | (392) | 3,154 |
| Non-GAAP tax adjustment (calculated as (benefit from) provision for income taxes less non-GAAP tax provision) | $ (460) | $ (1,246) | $ (2,642) | $ (2,191) |
| Note: prior period amounts have been revised to conform to the current period presentation. | ||||
| EPOCRATES, INC. | ||||
| RECONCILIATION OF NET (LOSS) INCOME PER DILUTED COMMON SHARE TO ADJUSTED NET INCOME PER DILUTED COMMON SHARE | ||||
| (in thousands, except per share amounts) | ||||
|
Three Months Ended September 30, |
Nine Months Ended September 30, |
|||
| 2012 | 2011 | 2012 | 2011 | |
| GAAP net (loss) income per diluted common share | ||||
| (Loss) income from continuing operations | $ (1,016) | $ 705 | $ (740) | $ 5,140 |
| Gain (loss) from discontinued operations, net of tax | 408 | (19) | (1,705) | (2,186) |
| Net (loss) income | $ (608) | $ 686 | $ (2,445) | $ 2,954 |
|
Less: Accrued dividend on Series B mandatorily redeemable convertible preferred stock plus an 8% non-cumulative dividend on Series A and Series C mandatorily redeemable convertible preferred stock * |
-- | -- | -- | 294 |
| Net (loss) income attributable to common stockholders | $ (608) | $ 686 | $ (2,445) | $ 2,660 |
| Divided by: | ||||
| Weighted average number of common shares outstanding - basic ** | 24,808 | 23,644 | 24,668 | 21,655 |
| Weighted average number of common shares outstanding - diluted | 25,123 | 24,926 | 25,049 | 23,636 |
| Net (loss) income per share: | ||||
| Continuing operations | $ (0.04) | $ 0.03 | $ (0.03) | $ 0.21 |
| Discontinued operations, net of tax | 0.02 | -- | (0.07) | (0.10) |
| Net (loss) income attributable to common stockholders | $ (0.02) | $ 0.03 | $ (0.10) | $ 0.11 |
| Non-GAAP net (loss) income per diluted common share | ||||
| (Loss) income from continuing operations | $ (1,016) | $ 705 | $ (740) | $ 5,140 |
| Gain (loss) from discontinued operations, net of tax | 408 | (19) | (1,705) | (2,186) |
| Net (loss) income | $ (608) | $ 686 | $ (2,445) | $ 2,954 |
|
Less: Accrued dividend on Series B mandatorily redeemable convertible preferred stock plus an 8% non-cumulative dividend on Series A and Series C mandatorily redeemable convertible preferred stock * |
-- | -- | -- | 294 |
| Net (loss) income attributable to common stockholders | $ (608) | $ 686 | $ (2,445) | $ 2,660 |
| Income from continuing operations, as adjusted | $ 607 | $ 1,725 | $ 3,832 | $ 7,088 |
| Gain (loss) from discontinued operations, net of tax | 408 | (19) | (1,705) | (2,186) |
| Net income, as adjusted | $ 1,015 | $ 1,706 | $ 2,127 | $ 4,902 |
| Divided by: | ||||
| Weighted average number of common shares outstanding - basic ** | 24,808 | 23,644 | 24,668 | 21,655 |
| Weighted average number of common shares outstanding - diluted | 25,123 | 24,926 | 25,049 | 23,636 |
| Net income (loss) per share: | ||||
| Continuing operations | $ 0.02 | $ 0.07 | $ 0.15 | $ 0.30 |
| Discontinued operations, net of tax | 0.02 | -- | (0.07) | (0.09) |
| Net income per share attributable to common stockholders | $ 0.04 | $ 0.07 | $ 0.08 | $ 0.21 |
| Weighted average number of common shares outstanding | ||||
| Weighted average number of common shares outstanding - basic | 24,808 | 23,644 | 24,668 | 21,655 |
| Add: dilutive effect of conversion of outstanding stock options, restricted stock units and warrants | 315 | 1,282 | 381 | 1,981 |
| Weighted average number of common shares outstanding - diluted | 25,123 | 24,926 | 25,049 | 23,636 |
| * The accrued dividend on Series B mandatorily redeemable convertible preferred stock and 8% non-cumulative dividend on Series A and Series C mandatorily redeemable convertible preferred stock is used in the calculations of income from continuing operations (GAAP and non-GAAP basis) and net (loss) income (GAAP and non-GAAP basis). Accordingly, per share calculations for continuing operations (GAAP and non-GAAP basis) and net (loss) income (GAAP and non-GAAP basis) adjust for the effect of these dividends. | ||||
| ** In accordance with U.S. GAAP, Epocrates does not include dilutive securities in its calculations of per share loss from continuing operations, discontinued operations, net of tax, or net loss. Accordingly, the denominator used in these calculations is the weighted average number of common shares outstanding - basic. | ||||
| Note: each per share calculation is computed independently for each component of net income (loss) per share presented. Accordingly, the sum of the income (loss) per share components may not agree with the calculated total net loss per share. | ||||