Net Income Per Share

9 Months Ended

Oct. 03, 2021

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 (“RSUs”) 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 October 3, 2021 and September 27, 2020 were as follows:

	Three Months Ended				Nine Months Ended
	October 3, 2021		September 27, 2020		October 3, 2021		September 27, 2020
	(In thousands, except per share data)
Numerator:
Net income	$	9,584	$	25,535	$	50,378	$	27,345

Denominator:
Weighted average common shares - basic		30,301		30,037		30,495		29,746
Potentially dilutive common share equivalent		497		704		861		595
Weighted average common shares - dilutive		30,798		30,741		31,356		30,341

Basic net income per share	$	0.32	$	0.85	$	1.65	$	0.92
Diluted net income per share	$	0.31	$	0.83	$	1.61	$	0.90

Anti-dilutive employee stock-based awards, excluded		1,036		1,221		389		1,175