NET INCOME (LOSS) PER COMMON SHARE

6 Months Ended

Jun. 30, 2014

NET INCOME (LOSS) PER COMMON SHARE

NET INCOME (LOSS) PER COMMON SHARE

NOTE 3.  NET INCOME (LOSS) PER COMMON SHARE

Basic net income (loss) per common share is calculated by dividing the net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is calculated by dividing the net income (loss) by the weighted-average number of shares of common stock outstanding during the period, plus potentially dilutive common shares, consisting solely of stock options, for the period determined using the treasury-stock method. For purposes of this calculation, options to purchase stock are considered to be potential common shares and are only included in the calculation of diluted net income (loss) per share when their effect is dilutive. Basic and diluted earnings per common share are calculated as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands, except for per share amounts)	2014		2013		2014		2013
Numerator:
Net income (loss)	$	12,746	$	478	$	30,684	$	(5,002	)
Denominator for basic net income (loss) per share	58,106		56,562		57,827		56,512
Net effect of potential dilutive common shares	2,324		580		2,431		—
Denominator for diluted net income (loss) per share:	60,430		57,142		60,258		56,512
Basic net income (loss) per share	$	0.22	$	0.01	$	0.53	$	(0.09	)
Diluted net income (loss) per share	$	0.21	$	0.01	$	0.51	$	(0.09	)

For the three and six months ended June 30, 2014, the total number of anti-dilutive outstanding common stock options excluded from the diluted net income per common share computation was 1.6 million and 1.2 million, respectively. For the three and six months ended June 30, 2013, the total number of anti-dilutive outstanding common stock options excluded from the diluted net income per common share computation was 5.9 million and 7.3 million, respectively.