Computation of Net Earnings per Share

9 Months Ended

Sep. 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				Nine months ended
	September 30,				September 30,
	2020		2019		2020		2019
	(in thousands, except per share amounts)
Net income available to common stockholders	$	10,785	$	704	$	35,308	$	7,322
Weighted average common shares outstanding used in computing basic income per share		33,477		32,344		33,159		32,584
Incremental options and RSUs		697		979		911		1,237
Weighted average common shares used in computing diluted net income per share		34,174		33,323		34,070		33,821
Net income per share
Basic	$	0.32	$	0.02	$	1.06	$	0.22
Diluted	$	0.32	$	0.02	$	1.04	$	0.22

Diluted weighted average common shares outstanding does not include 848 and 847,448 common equivalent shares issuable with respect to outstanding equity awards for the three month periods ended September 30, 2020 and 2019, respectively, or 8,226 and 236,229 common equivalent shares issuable with respect to outstanding equity awards for the nine month periods ending September 30, 2020 and 2019, respectively, as their effect would have been anti-dilutive.