Computation of Net Earnings per Share

3 Months Ended

Mar. 31, 2017

Computation of Net Earnings per Share

Computation of Net Earnings per Share

Note 3.  Computation of Net Earnings per Share

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

The components of net earnings per share are as follows:

	Three months ended  March 31,
	2017		2016
Net income available to common stockholders	$	9,506	$	1,948
Weighted average common shares outstanding used in computing basic income per share		29,772		29,038
Incremental options and RSUs		2,483		1,482
Weighted average common shares outstanding used in computing diluted net income per share		32,255		30,520
Net income per share
Basic	$	0.32	$	0.07
Diluted	$	0.29	$	0.06

Diluted weighted average common shares outstanding does not include options and restricted stock units outstanding to purchase 0.1 million and 0.9 million common equivalent shares for the three month periods ended March 31, 2017 and 2016, respectively, as their effect would have been anti-dilutive.