Computation of Net Earnings per Share

9 Months Ended

Sep. 30, 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  September 30,				Nine months ended September 30,
	2017		2016		2017		2016
	(in thousands, except per share data)
Net income available to common stockholders	$	11,841	$	2,151	$	35,279	$	7,036
Weighted average common shares outstanding used in computing basic income per share		31,274		29,221		30,550		29,118
Incremental options and RSUs		2,250		1,816		2,498		1,642
Weighted average common shares used in computing diluted net income per share		33,524		31,037		33,048		30,760
Net income per share
Basic	$	0.38	$	0.07	$	1.15	$	0.24
Diluted	$	0.35	$	0.07	$	1.07	$	0.23

Diluted weighted average common shares outstanding does not include options and restricted stock units outstanding to purchase four thousand and 0.9 million common equivalent shares for the three month periods ended September 30, 2017 and 2016, respectively, and does not include options and restricted stock units outstanding to purchase 0.2 million and 0.9 million common equivalent shares for the nine month periods ended September 30, 2017 and 2016, respectively, as their effect would have been anti-dilutive.