Net Income Per Share

9 Months Ended

Sep. 27, 2020

Note 6. 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 units and performance shares, 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 per share for the three and nine months ended September 27, 2020 and September 29, 2019 are as follows:

	Three Months Ended				Nine Months Ended
	September 27, 2020		September 29, 2019		September 27, 2020		September 29, 2019
	(In thousands, except per share data)
Numerator:
Net income	$	25,535	$	12,529	$	27,345	$	26,211

Denominator:
Weighted average common shares - basic		30,037		30,933		29,746		31,221
Potentially dilutive common share equivalent		704		886		595		1,106
Weighted average common shares - dilutive		30,741		31,819		30,341		32,327

Basic net income per share	$	0.85	$	0.41	$	0.92	$	0.84
Diluted net income per share	$	0.83	$	0.39	$	0.90	$	0.81

Anti-dilutive employee stock-based awards, excluded		1,221		1,587		1,175		625