EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2020

NOTE 8 — EARNINGS PER SHARE

A reconciliation of the denominators used in computing per share net income (EPS) is as follows (in thousands, except per share amounts):


	Three Months Ended March 31,
	2020		2019
Basic:
Net income	$	654	$	2,960
Less: allocation to participating securities	(20)		(56)
Net income attributable to common stockholders	$	634	$	2,904
Weighted average common stock outstanding	44,404		43,949
Net income per share attributable to common stockholders	$	0.01	$	0.07

Diluted:
Net income	$	654	$	2,960
Less: allocation to participating securities	(21)		(56)
Net income attributable to common stockholders	$	633	$	2,904
Weighted average common stock outstanding	44,404		43,949
Effect of dilutive securities: stock options and awards	634		597
Weighted-average shares used in computing net income per share	45,038		44,546
Net income per share attributable to common stockholders	$	0.01	$	0.07

Basic net income per share is computed by dividing the net income for the period by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing the net income for the period by the weighted average number of common and common equivalent shares outstanding during the period. Restricted stock awards (RSAs) and stock options to acquire 1,156,913 and 672,007 shares for the three months ended March 31, 2020 and 2019, respectively, were excluded from the computations of diluted earnings per share because the effect of including the RSAs and stock options would have been anti-dilutive.

We apply the two-class method of computing earnings per share, which requires the calculation of separate earnings per share amounts for our non-vested, time-based restricted stock awards with non-forfeitable dividends and for our common stock. Our non-vested, time-based restricted stock awards with non-forfeitable dividends are considered securities which participate in undistributed earnings with common stock. Under the two-class computation method, net losses are not allocated to participating securities unless the holder of the security has a contractual obligation to share in the losses. Our non-vested, time-based restricted stock awards with non-forfeitable dividends do not have such an obligation so they are not allocated losses.