Net Income (Loss) Per Share

9 Months Ended

Sep. 30, 2015

The Company calculates basic net income per share of common stock by dividing net income for the period by the weighted-average number of shares of common stock outstanding during the period. The Company calculates diluted net income per share by dividing net income attributable to the Company for the period by the weighted-average number of shares of common stock outstanding during the period, plus any dilutive effect of share-based equity awards during the period, using the treasury stock method. Included in the diluted weighted average shares outstanding calculation is the effect of non-vested early option exercises of 188,875 shares that vested in February 2015, which were the last remaining non-vested shares of the 573,941 shares that were early-exercised on June 13, 2012. These shares, until they vested, were removed from the basic earnings per share calculation as the shares could have been repurchased by the Company prior to the vesting date if the employment of the early exercised option shareholders would have been terminated.

The computation of basic and diluted net income per share is as follows (in thousands, except share and per share amounts):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015			2014
Net income (loss)	$	781	$	1,071	$	(7,246	)	$	3,704
Weighted average number of shares outstanding:
Weighted average common shares outstanding	41,723,667		41,103,502		41,512,189			40,910,381
Weighted average shares outstanding for basic earnings per share	41,723,667		41,103,502		41,512,189			40,910,381
Effect of share-based equity award plan	1,757,725		2,047,737		—			2,263,820
Weighted average shares outstanding for diluted earnings per share	43,481,392		43,151,239		41,512,189			43,174,201
Net income (loss) per share:
Basic	$	0.02	$	0.03	$	(0.17	)	$	0.09
Diluted	$	0.02	$	0.02	$	(0.17	)	$	0.09

The weighted average number of shares outstanding used in the computation of diluted loss per share for the nine months ended September 30, 2015 does not include the effect of 1,845,929 stock options and restricted stock units, as the effect would have been anti-dilutive.