Earnings Per Share

9 Months Ended

Sep. 30, 2020

7. Earnings Per Share

Basic earnings per share is computed using the weighted-average number of outstanding shares of common stock during the period. Diluted earnings per share is computed using the weighted-average number of outstanding shares of common stock and, when dilutive, potential shares of common stock outstanding during the period. Potential shares of common stock consist of incremental shares issuable upon the assumed exercise of stock options and vesting of restricted stock units utilizing the treasury stock method. The computation of earnings per share is as follows:

	For the Three Months Ended September 30,					For the Nine Months Ended September 30,
(in thousands, except per share data)	2020		2019			2020		2019
	(unaudited)					(unaudited)
Basic earnings per share:
Net income (loss)	$	6,314	$	(4,144	)	$	209	$	(15,338	)
Shares used in computation:
Weighted-average common stock outstanding		19,183		18,375			18,834		18,070
Basic earnings per share	$	0.33	$	(0.23	)	$	0.01	$	(0.84	)

Diluted earnings per share:
Net income (loss)	$	6,314	$	(4,144	)	$	209	$	(15,338	)
Shares used in computation:
Weighted-average common stock outstanding		19,183		18,375			18,834		18,070
Common stock equivalents		554		—			608		—
Weighted-average number of shares		19,737		18,375			19,442		18,070
Diluted earnings per share	$	0.32	$	(0.23	)	$	0.01	$	(0.84	)

Employee stock options with exercise prices greater than the average market price of the common stock were excluded from the diluted calculation as their inclusion would have been anti-dilutive. The following table summarizes the potential share of common stock excluded from the diluted calculation:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
(in thousands)	2020		2019		2020		2019
	(unaudited)				(unaudited)
Common stock equivalents excluded due to net loss		—		835		—		878
Employee stock options		31		416		31		79
		31		1,251		31		957