Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed using the weighted average common and dilutive common equivalent shares outstanding. In computing diluted earnings per share, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options. Due to the net loss in fiscal 2002, no potentially dilutive securities are included in the calculation.
The computation of basic net income (loss) per share for all years presented is derived from the information on the face of the statement of operations, and there are no reconciling items in either the numerator or denominator. Additionally, there are no reconciling items in the numerator used to compute diluted net income (loss) per share. The total shares used in the denominator of the diluted net income per share calculation includes 25.1 million and 26.8 million common equivalent shares attributable to outstanding options for fiscal years 2001 and 2000, respectively.
Outstanding options to purchase approximately 26.8 million, 4.3 million and 0.3 million, for fiscal 2002, 2001 and 2000, respectively, under the Company's Stock Option Plans were not included in the treasury stock calculation to derive diluted net income (loss) per share as their inclusion would have had an anti-dilutive effect. In addition, the put options discussed in Note 10 were not included in basic or diluted net income (loss) per share as their inclusion would have had an anti-dilutive effect.