NET INCOME (LOSS) PER SHARE

12 Months Ended

Dec. 31, 2016

The following table sets forth the calculation of basic and diluted net income (loss) per share (in thousands except per share data):



	Year Ended December 31,
	2014		2015			2016
Numerator:
Net income (loss)	$	44,869	$	(3,465	)	$	85,071
Denominator:
Denominator for basic net income (loss) per share — weighted-average outstanding shares	30,215		31,950			32,167
Effect of dilutive securities:
Stock options and restricted stock	426		—			269
Denominator for diluted net income (loss) per share — weighted-average outstanding shares	30,641		31,950			32,436

Net income (loss) per share — basic	$	1.48	$	(0.11	)	$	2.64
Net income (loss) per share — diluted	$	1.46	$	(0.11	)	$	2.62

Stock options to purchase approximately 80,000 and 194,000 shares that were outstanding for the years ended December 31, 2014 and 2016, respectively, were not included in the computation of diluted net income per share because the inclusion of the potentially dilutive common shares would have an anti-dilutive effect. The Company did not consider the impact of potentially dilutive securities for the year ended December 31, 2015 when calculating the diluted net loss per share because the inclusion of the potentially dilutive common shares would have an anti-dilutive effect. Shares underlying restricted common stock awards that vest based on Company performance and service conditions that have not been achieved as of the end of the period are not included in the computation of basic or diluted earnings per share. Shares underlying restricted stock units that vest based on Company service conditions, that have not been achieved as of the end of the period are not included in the computation of basic or diluted earnings per share. The following table summarizes the shares underlying the performance-based restricted stock awards and service-based restricted stock units excluded from the basic and diluted calculation (in thousands):



	Year Ended December 31,
	2014	2015	2016
Performance-based restricted stock awards	23	55	59
Service-based restricted stock units	1	1	1
Total shares excluded from computation	24	56	60