Computation of Net Income (Loss) per Share

9 Months Ended

Sep. 30, 2015

Computation of Net Income (Loss) per Share

Computation of Net Income (Loss) per Share

Note 4.  Computation of Net Income (Loss) per Share

Basic income (loss) per share is computed by dividing net income (loss) available to common stockholders (the numerator) by the weighted-average number of common shares outstanding (the denominator) for the period. The computation of diluted income (loss) per share is similar to basic income per share, except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potentially dilutive common shares from stock options and restricted stock units (RSUs) had been issued, calculated using the treasury stock method.

The components of net income (loss) per share are as follows:

	Three months ended September 30,					Nine months ended September 30,
	2015		2014			2015		2014
	(in thousands, except per share data)
Net income (loss) available to common stockholders	$	6,101	$	(4,704	)	$	13,852	$	(11,430	)
Weighted average common shares outstanding used in computing basic income (loss) per share	114,799		111,701			113,918		111,191
Incremental options and RSUs	7,063		—			6,702		—
Weighted average common shares outstanding used in computing diluted net income (loss) per share	121,862		111,701			120,620		111,191
Net income (loss) per share
Basic	$	0.05	$	(0.04	)	$	0.12	$	(0.10	)
Diluted	$	0.05	$	(0.04	)	$	0.11	$	(0.10	)

The Company incurred net losses for the three and nine month periods ended September 30, 2014, and has excluded the incremental shares attributable to outstanding stock options and restricted stock units from the calculation of net loss per share because the effect would have been anti-dilutive. The following table sets forth the number of incremental shares excluded from the calculation above:

	Three months ended September 30,		Nine months ended September 30,
	2015	2014	2015	2014
	(in thousands)
Incremental shares excluded from the calculation of net loss per share	—	4,296	—	4,550