Net Income (Loss) Per Share

3 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

Net Income (Loss) Per Share

11. NET INCOME (LOSS) PER SHARE

Basic 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. Diluted net income per share is based upon the weighted average common shares outstanding for the period plus dilutive potential shares including unvested restricted stock, RSUs, and stock options using the treasury stock method. The following is a reconciliation of the numerators and denominators used in computing basic and diluted net income (loss) per share:

	Three Months Ended March 31,
	2015			2014
	(in thousands except per share amounts)
Numerator:
Net income (loss)	$	(59	)	$	1,864
Denominator:
Shares used in computation of basic net income (loss) per share (weighted average common shares outstanding)		27,818			28,370
Dilutive potential common shares:
Restricted Stock and RSUs		0			316
Stock options		0			696
Shares used in computation of diluted net income (loss) per share		27,818			29,382
Basic net income (loss) per share	$	0.00		$	0.07
Diluted net income (loss) per share	$	0.00		$	0.06

As of March 31, 2015, 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 three months ended March 31, 2015, since their effect would have been anti-dilutive. These outstanding securities consisted of the following:

	March 31,
	2015
Outstanding stock options		3,875,153
Unvested RSUs		565,148

For the three months ended March 31, 2014, options to purchase approximately 1.4 million shares of common stock with exercise prices greater than the average fair market value of the Company’s stock of $11.21 per share were not included in the calculation because the effect would have been anti-dilutive.