Net Income Per Share

Basic net income per share is computed by dividing the net income for the period by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing the net income for the period by the weighted average number of shares of common stock and potentially dilutive common stock outstanding during the period. Potentially dilutive common shares include common shares issuable upon exercise of stock options, vesting of restricted stock awards, and issuances of shares under the ESPP, which are reflected in diluted net income per share by application of the treasury stock method. Potentially dilutive common shares are excluded from the computation of diluted net income per share when their effect is anti-dilutive.

Net income per share for the years ended December 31, 2017, 2016 and 2015 was as follows:



	Year Ended December 31,
	2017		2016		2015
	(In thousands, except per share data)
Numerator:
Net income	$	19,436	$	75,851	$	48,584
Denominator:
Weighted average common shares - basic	32,097		32,758		33,161
Potentially dilutive common share equivalent	947		970		627
Weighted average common shares - dilutive	33,044		33,728		33,788

Basic net income per share	$	0.61	$	2.32	$	1.47
Diluted net income per share	$	0.59	$	2.25	$	1.44

Anti-dilutive employee stock-based awards, excluded	279		258		1,807