NET INCOME (LOSS) PER SHARE

12 Months Ended

Dec. 31, 2020

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, stock awards 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):


	For the Year Ended December 31,
	2020		2019
Numerator:
Net income (loss)	$	5,401	$	(20,044)
Denominator:
Weighted-average common stock outstanding, basic	28,117		31,529
Dilutive potential common shares:
Stock options, stock awards and ESPP	360		—
Total shares, diluted	28,477		31,529
Basic net income (loss) per share	$	0.19	$	(0.64)
Diluted net income (loss) per share	$	0.19	$	(0.64)

We include the underlying market condition stock awards in the calculation of diluted earnings per share if the performance condition has been satisfied as of the end of the reporting period and exclude stock equity awards if the performance condition has not been met.

For the years ended December 31, 2020 and 2019, we had stock options, RSUs and RSAs outstanding that could potentially dilute basic earnings per share in the future, but these were excluded from the computation of diluted net income (loss) per share because their effect would have been anti-dilutive. These outstanding securities consisted of the following (in thousands):


	For the Year Ended December 31,
	2020	2019
Stock options	1,236	967
Stock awards	—	1,036
	1,236	2,003