Computation of Net Earnings per Share

6 Months Ended

Jun. 30, 2020

Computation of Net Earnings per Share

Computation of Net Earnings per Share

Note 6.  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 on exercise of stock options and vesting of RSUs had been issued, calculated using the treasury stock method.

The components of net earnings per share are as follows:

	Three months ended				Six months ended
	June 30,				June 30,
	2020		2019		2020		2019
	(in thousands, except per share amounts)
Net income available to common stockholders	$	13,302	$	556	$	24,523	$	6,618
Weighted average common shares outstanding used in computing basic income per share		33,116		32,729		32,998		32,706
Incremental options and RSUs		842		1,172		1,025		1,358
Weighted average common shares used in computing diluted net income per share		33,958		33,901		34,023		34,064
Net income per share
Basic	$	0.40	$	0.02	$	0.74	$	0.20
Diluted	$	0.39	$	0.02	$	0.72	$	0.19

Diluted weighted average common shares outstanding does not include 3,138 and 239,314 common equivalent shares issuable with respect to outstanding equity awards for the three month periods ended June 30, 2020 and 2019, respectively, or 5,006 and 12,213 common equivalent shares issuable with respect to outstanding equity awards for the six month periods ending June 30, 2020 and 2019, respectively, as their effect would have been anti-dilutive.