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NET INCOME (LOSS) PER SHARE
 9 Months Ended
Sep. 30, 2016
Earnings Per Share [Abstract]  
NET INCOME (LOSS) PER SHARE
NET INCOME (LOSS) PER SHARE
Basic and diluted net income (loss) per share is computed using the weighted average number of common shares outstanding for the period, excluding unvested restricted stock and RSUs. The following is a reconciliation of the numerators and denominators used in computing basic and diluted net loss per share for both continuing and discontinued operations:
 
 
Three months ended September 30,
 
Nine Months Ended September 30,
 
 
2016
 
2015
 
2016
 
2015
 
 
(in thousands, except
per share amounts)
Numerator:
 
 
 
 
 
 
 
 
Income (loss) from continuing operations

 
$
7,018

 
$
184

 
$
(1,882
)
 
$
1,720

Income from discontinued operations, net of tax
 
—

 
—

 
649

 
—

Net income (loss) used in computing basic net income (loss) per share
 
$
7,018

 
$
184

 
$
(1,233
)
 
$
1,720

Denominator:
 
 
 
 
 
 
 
 
Shares used in computation of basic and diluted net income (loss) per share (weighted average common shares outstanding)
 
28,849

 
28,190

 
28,726

 
28,027

Dilutive potential common shares:
 
 
 
 
 
 
 
 
Stock options, ESPP, restricted Stock and RSUs
 
449

 
944

 
—

 
866

Shares used in computation of diluted net income (loss) per share
 
29,298

 
29,134

 
28,726

 
28,893

 
 
 
 
 
 
 
 
 
Basic net income (loss) per share:
 
 
 
 
 
 
 
 
Continuing operations
 
$
0.24

 
$
0.01

 
$
(0.07
)
 
$
0.06

Discontinued operations
 
0.00

 
0.00

 
0.02

 
0.00

Total
 
$
0.24

 
$
0.01

 
$
(0.05
)
 
$
0.06

 
 
 
 
 
 
 
 
 
Diluted net income (loss) per share:
 
 
 
 
 
 
 
 
Continuing operations
 
$
0.24

 
$
0.01

 
$
(0.07
)
 
$
0.06

Discontinued operations
 
0.00

 
0.00

 
0.02

 
0.00

Total
 
$
0.24

 
$
0.01

 
$
(0.05
)
 
$
0.06


The Company includes the underlying market condition stock options in the calculation of diluted earnings per share if the performance condition has been satisfied as of the end of the reporting period and excludes such options if the performance condition has not been met.

For the three months ended September 30, 2016, standard stock options to purchase approximately 2.7 million shares of common stock, respectively, with exercise prices greater than the average fair market value of the Company’s stock of $7.41 per share, respectively, were not included in the calculation because the effect would have been anti-dilutive.

For the three months and nine months ended September 30, 2015, standard stock options to purchase approximately 917,000 and 1.8 million shares of common stock, respectively, with exercise prices greater than the average fair market value of the Company’s stock of $12.13 and $10.78 per share, respectively, were not included in the calculation because the effect would have been anti-dilutive.
As of September 30, 2016, the Company had securities outstanding that could potentially dilute basic earnings per share in the future, but these were excluded from the computation of diluted net loss per share for the nine months ended September 30, 2016, since their effect would have been anti-dilutive. These outstanding securities consisted of the following:
 
September 30,
 
 
2016
 
Standard and market condition stock options outstanding
3,661,163

 
Restricted stock awards outstanding
77,540

 
RSUs outstanding
527,410

 
ESPP
11,441