Notes to Consolidated Financial Statements

Note 8. Net Income (Loss) Per Share

The computation of basic net income (loss) per share for all periods presented is derived from the information on the consolidated statements of operations, and 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 (loss) per share calculation includes 13.1 million and 11.6 million common equivalent shares attributable to outstanding stock options for fiscal years 2004 and 2003, respectively, that are not included in basic net income (loss) per share.  For fiscal 2002, 18.0 million common stock equivalents attributable to the Company's stock option plans were excluded from the calculation of diluted net loss per share, as they were antidilutive. 

Outstanding out-of-the-money stock options to purchase approximately 21.1 million, 22.9 million and 8.8 million shares, for fiscal 2004, 2003 and 2002, respectively, under the Company's stock option plans were excluded by the treasury stock calculation of diluted net income (loss) per share.  These options could be dilutive in the future if the Company's average share price increases and is equal to or greater than the exercise price of these options.