Net Income (Loss) Per Share

3 Months Ended

Mar. 29, 2020

Note 6. 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 (loss) 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 (loss) per share by application of the treasury stock method. Potentially dilutive common shares are excluded from the computation of diluted net income (loss) per share when their effect is anti-dilutive.

Net income (loss) per share for the three months ended March 29, 2020 and March 31, 2019 are as follows:

	Three Months Ended
	March 29, 2020			March 31, 2019
	(In thousands, except per share data)
Numerator:
Net income (loss)	$	(4,173	)	$	12,843

Denominator:
Weighted average common shares - basic		29,583			31,483
Potentially dilutive common share equivalent		—			1,391
Weighted average common shares - dilutive		29,583			32,874

Basic net income (loss) per share	$	(0.14	)	$	0.41
Diluted net income (loss) per share	$	(0.14	)	$	0.39

Anti-dilutive employee stock-based awards, excluded		2,485			507