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Net Income (Loss) Per Share
12 Months Ended
Dec. 31, 2019
Earnings Per Share [Abstract]  
Net Income (Loss) Per Share

Note 7. Net Income (Loss) Per Share

Basic net income (loss) per share is computed by dividing the net income (loss) for the period by the weighted average number of common shares outstanding during the period. Diluted net income (loss) 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 Employee Stock Purchase Plan (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 (loss) per share for the years ended December 31, 2019, 2018 and 2017 was as follows:

 

 

 

Year Ended December 31,

 

 

 

2019

 

 

2018

 

 

2017

 

 

 

(In thousands, except per share data)

 

Numerator:

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

 

$

25,791

 

 

$

17,326

 

 

$

(11,133

)

Net income (loss) from discontinued operations

 

 

 

 

 

(35,655

)

 

 

30,569

 

Net income (loss)

 

 

25,791

 

 

 

(18,329

)

 

 

19,436

 

Less: Net loss attributable to non-controlling interest in discontinued operations

 

 

 

 

 

(9,167

)

 

 

 

Net income (loss) attributable to NETGEAR, Inc.

 

$

25,791

 

 

$

(9,162

)

 

$

19,436

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares - basic

 

 

30,936

 

 

 

31,626

 

 

 

32,097

 

Potentially dilutive common share equivalent

 

 

1,029

 

 

 

1,511

 

 

 

 

Weighted average common shares - dilutive

 

 

31,965

 

 

 

33,137

 

 

 

32,097

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic net income (loss) per share

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

 

$

0.83

 

 

$

0.55

 

 

$

(0.35

)

Net income (loss) from discontinued operations attributable to NETGEAR, Inc.

 

 

 

 

 

(0.84

)

 

 

0.96

 

Net income (loss) attributable to NETGEAR, Inc.

 

$

0.83

 

 

$

(0.29

)

 

$

0.61

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted net income (loss) per share

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations

 

$

0.81

 

 

$

0.52

 

 

$

(0.35

)

Net income (loss) from discontinued operations attributable to NETGEAR, Inc.

 

 

 

 

 

(0.80

)

 

 

0.96

 

Net income (loss) attributable to NETGEAR, Inc.

 

$

0.81

 

 

$

(0.28

)

 

$

0.61

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Anti-dilutive employee stock-based awards, excluded

 

 

1,066

 

 

 

815

 

 

 

279