Net Income (Loss) Per Share

12 Months Ended

Dec. 31, 2020

Net Income (Loss) Per Share

Net Income (Loss) Per Share

Note 13. Net Income (Loss) per Share

Basic net income (loss) per share is computed using the weighted average number of common shares outstanding during the periods less shares of common stock subject to repurchase and non-vested stock awards. Diluted net income (loss) per share is computed using the weighted-average number of common shares outstanding and potentially dilutive common shares outstanding during the periods. The dilutive effect of outstanding stock options and restricted stock awards is reflected in diluted earnings per share by application of the treasury stock method. Potentially dilutive common shares consist of common shares issuable upon the exercise of stock options. Potentially dilutive common shares are excluded in net loss periods, as their effect would be anti-dilutive.

A reconciliation of the numerators and denominators of the basic and diluted net income (loss) per share calculations is as follows (in thousands, except per share data):

	Year ended
	December 31,
	2020		2019		2018
Numerator:
Net income (loss) attributable to AXT, Inc.	$	3,238	$	(2,600)	$	9,654
Less: Preferred stock dividends		(177)		(177)		(177)
Net income (loss) available to common stockholders	$	3,061	$	(2,777)	$	9,477
Denominator:
Denominator for basic net income (loss) per share - weighted-average common shares		40,152		39,487		39,049
Effect of dilutive securities:
Common stock options		602		—		1,106
Restricted stock awards		271		—		110
Denominator for dilutive net income (loss) per common shares		41,025		39,487		40,265
Net income (loss) attributable to AXT, Inc. per common share:
Basic	$	0.08	$	(0.07)	$	0.24
Diluted	$	0.07	$	(0.07)	$	0.24
Options excluded from diluted net income (loss) per share as the impact is anti-dilutive		862		2,953		266
Restricted stock excluded from diluted net income (loss) per share as the impact is anti-dilutive		161		939		227