Net Income per Share

6 Months Ended

Jun. 30, 2020

The following table presents the calculation of basic and diluted net income per share (in thousands, except per share information):


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Net income	$	6,609	$	8,528	$	15,583	$	15,554
Basic:
Weighted-average shares of common stock outstanding	31,888		31,343		31,763		31,359
Shares used in computing basic net income per share	31,888		31,343		31,763		31,359
Effect of dilutive securities:
Restricted stock subject to vesting	265		495		401		558
Shares issuable for acquisition consideration (1)	224		202		203		249
Shares issuable for conversion of convertible senior notes	—		—		77		—
Shares used in computing diluted net income per share	32,377		32,040		32,444		32,166

Basic net income per share	$	0.21	$	0.27	$	0.49	$	0.50
Diluted net income per share	$	0.20	$	0.27	$	0.48	$	0.48

(1)For the three and six months ended June 30, 2020, this represents the shares held in escrow pursuant to: (i) the Asset Purchase Agreement with RAS & Associates, LLC (“RAS”); (ii) the Asset Purchase Agreement with Zeon Solutions Incorporated and certain related entities (collectively, “Zeon”); (iii) the Asset Purchase Agreement with Stone Temple Consulting Corporation (“Stone Temple”); (iv) the Asset Purchase Agreement with Sundog Interactive, Inc. (“Sundog”); (v) the Asset Purchase Agreement with MedTouch LLC (“MedTouch”); (vi) the Asset Purchase Agreement with Catalyst Networks, Inc. (“Brainjocks”); and (vii) the Stock Purchase Agreement with the shareholders of Productora de Software S.A.S. (“PSL”), as part of the consideration. For the three and six months ended June 30, 2019, this represents the shares held in escrow pursuant to: (i) the Asset Purchase Agreement with Zeon; (ii) the Asset Purchase Agreement with RAS; (iii) the Asset Purchase Agreement with Southport Services Group, LLC (“Southport”); (iv) the Asset Purchase Agreement with Stone Temple; (v) the Agreement and Plan of Merger with Elixiter, Inc. (“Elixiter”); and (vi) the Asset Purchase Agreement with Sundog, as part of the consideration.

The number of anti-dilutive securities not included in the calculation of diluted net income per share were as follows (in thousands):


	Three Months Ended June 30,			Six Months Ended June 30,
	2020	2019	2020	2019
Restricted stock subject to vesting	174	—	121	52
Convertible senior notes	3,823	3,823	—	3,823
Warrants related to the issuance of convertible senior notes	3,823	3,823	3,823	3,823
Total anti-dilutive securities	7,820	7,646	3,944	7,698

See Note 11, Long-term Debt for further information on the convertible senior notes and warrants related to the issuance of convertible notes.

The Company’s Board of Directors has authorized the repurchase of up to $265.0 million of Company common stock through a stock repurchase program through June 30, 2021. The program could be suspended or discontinued at any time, based on market, economic, or business conditions. The timing and amount of repurchase transactions will be determined by management based on its evaluation of market conditions, share price, and other factors. Since the program’s inception on August 11, 2008, the Company has repurchased approximately $220.0 million (15.4 million shares) of outstanding common stock through June 30, 2020.