SeaChange International, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Earnings Per Share

Earnings Per Share

9 Months Ended

Oct. 31, 2011

14. Earnings Per Share

Earnings per share present both “basic” earnings per share and “diluted” earnings per share. Basic earnings per share are computed by dividing earnings available to common shareholders by the weighted-average shares of common stock outstanding during the period. For the purposes of calculating diluted earnings per share, the denominator includes both the weighted average number of shares of common stock outstanding during the period and the weighted average number of shares of potential common stock, such as stock options and restricted stock units and warrants, calculated using the treasury stock method.

For the three months ended October 31, 2011 and 2010, there were 1,541,052 and 2,905,000 shares of common stock equivalents, respectively, which were anti-dilutive based on the Company’s stock price being lower than the option exercise price.

For the nine months ended October 31, 2011 and 2010, there were 1,549,552 and 2,646,000 shares of common stock equivalents, respectively, which were anti-dilutive based on the Company’s stock price being lower than the option exercise price.

Below is a summary of the shares used in calculating basic and diluted income per share for the periods indicated:

	Three Months Ended				Nine Months Ended
	October 31,				October 31,
	2011		2010		2011		2010
	(in thousands)				(in thousands)
Weighted average shares used in calculating earnings per share—Basic		32,132		31,496		32,055		31,409
Dilutive common stock equivalents		685		-		651		520

Weighted average shares used in calculating earnings per share—Diluted		32,817		31,496		32,706		31,929

- Definition

The entire disclosure for earnings per share.

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