NET INCOME PER SHARE

3 Months Ended

Mar. 31, 2015

NET INCOME PER SHARE

NET INCOME PER SHARE

NOTE 3.  NET INCOME PER SHARE

Basic net (loss) income per share is calculated by dividing the net (loss) income by the weighted-average number of shares of common stock outstanding during the period. Diluted net (loss) income per share is calculated by dividing the net (loss) income by the weighted-average number of shares of common stock outstanding during the period, plus potentially dilutive common shares, consisting of unexercised stock options, unvested restricted stock awards, outstanding shares under the employee stock purchase plan and convertible debt. The Company uses the treasury-stock method to compute diluted earnings per share with respect to its stock options and equivalents. The Company uses the if-converted method to compute diluted earnings per share with respect to its convertible debt. 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 (loss) income per share when their effect is dilutive. Basic and diluted earnings per common share are calculated as follows:

	Three Months Ended March 31,
(in thousands, except for per share amounts)	2015			2014
Basic (loss) income per share
Net (loss) income	$	(11,633	)	$	17,939
Denominator	59,561			57,546
Basic net (loss) income per share	$	(0.20	)	$	0.31
Diluted net (loss) income per share
Net (loss) income	$	(11,633	)	$	17,939
Denominator:
Denominator for basic net (loss) income per share	59,561			57,546
Add effect of dilutive securities:
Stock options and equivalents	—			2,377
Denominator for diluted net (loss) income per share	59,561			59,923
Diluted net (loss) income per share	$	(0.20	)	$	0.30

The following table sets forth outstanding potentially dilutive common shares that are not included in the computation of diluted net (loss) income per share because, to do so would be anti-dilutive:

	Three Months Ended March 31,
(in thousands)	2015	2014
Convertible debt	17,931	—
Stock options and equivalents	4,026	800
Total potentially dilutive shares	21,957	800