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NET INCOME (LOSS) PER SHARE
 9 Months Ended
Sep. 30, 2018
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.
(in thousands, except per share amounts)
 
Three months ended September 30,
 
Nine months ended September 30,
 
 
2018
 
2017
 
2018
 
2017
Numerator:
 
 
 
 
 
 
 
 
Net income (loss)
 
$
(4,640
)
 
$
(5,287
)
 
$
57,485

 
$
(32,997
)
Denominator:
 
 
 
 
 
 
 
 
Shares used in computation of basic net income (loss) per share (weighted average common shares outstanding)
 
30,780

 
29,245

 
30,340

 
29,155

Dilutive potential common shares:
 
 
 
 
 
 
 
 
Stock options, ESPP, restricted stock awards and RSUs
 
—

 
—

 
994

 
—

Shares used in computation of diluted net income (loss) per share
 
30,780

 
29,245

 
31,334

 
29,155

Basic net income (loss) per share
 
$
(0.15
)
 
$
(0.18
)
 
$
1.89

 
$
(1.13
)
Diluted net income (loss) per share
 
$
(0.15
)
 
$
(0.18
)
 
$
1.83

 
$
(1.13
)

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 nine months ended September 30, 2018, standard stock options to purchase approximately 261,667 shares of common stock, with exercise prices greater than the average fair market value of the Company’s stock of $12.04 per share, were not included in the calculation because the effect would have been anti-dilutive.
As of September 30, 2018 and 2017, 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 September 30, 2018 and 2017, and nine months ended September 30, 2017, since their effect would have been anti-dilutive. These outstanding securities consisted of the following:
 
 
September 30,
 
 
2018
 
2017
Standard and market condition based stock options outstanding
 
2,322,517

 
3,815,784

Restricted stock awards outstanding
 
62,556

 
44,538

RSUs outstanding
 
1,090,938

 
627,454

ESPP
 
7,529

 
10,152