Earnings Per Share

3 Months Ended

Mar. 31, 2021

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 March 31,
(in thousands, except per share data)	2021		2020
	(unaudited)
Basic earnings per share:
Net income (loss)	$	358	$	(3,580	)
Shares used in computation:
Weighted-average common stock outstanding		19,201		18,482
Basic earnings per share	$	0.02	$	(0.19	)

Diluted earnings per share:
Net income (loss)	$	358	$	(3,580	)
Shares used in computation:
Weighted-average common stock outstanding		19,201		18,482
Common stock equivalents		523		—
Weighted-average number of shares		19,724		18,482
Diluted earnings per share	$	0.02	$	(0.19	)

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 shares of common stock excluded from the diluted calculation:

	For the Three Months Ended March 31,
(in thousands)	2021		2020
	(unaudited)
Common stock equivalents excluded due to net loss		—		520
Employee stock options		30		84
		30		604