NET INCOME (LOSS) PER SHARE

Basic net income (loss) per share is computed using the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per share is computed using the weighted average number of shares of common stock, adjusted for any dilutive effect of potential common stock. Potential common stock, computed using the treasury stock method, includes stock options, RSUs, RSAs and ESPP.

The following is a reconciliation of the numerators and denominators used in computing basic and diluted net income (loss) per share (in thousands, except per share amounts).



	Three Months Ended March 31,
	2019			2018
Numerator:
Net income (loss)	$	(11,016	)	$	69,883
Denominator:
Weighted-average common stock outstanding, basic	31,089			29,700
Dilutive effect of potential common shares:
Stock options, RSUs, RSA and ESPP	—			866
Total shares, diluted	31,089			30,566
Basic net income (loss) per share	$	(0.35	)	$	2.35
Diluted net income (loss) per share	$	(0.35	)	$	2.29

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 March 31, 2018, standard stock options to purchase approximately 551,000 shares of common stock, with exercise prices greater than the average fair market value of the Company’s stock of $10.14 per share, were not included in the calculation because the effect would have been anti-dilutive.

For the three months ended March 31, 2019, the following outstanding securities were excluded from the computation of diluted net loss per share because their effect would have been anti-dilutive (in thousands):



		March 31, 2019
Stock options		2,268
RSUs		63
RSAs		801