Net Income (Loss) Per Share

6 Months Ended

Jun. 30, 2014

Net Income (Loss) Per Share

Net Income (Loss) Per Share

Note 2.  Net Income (Loss) Per Share

Basic net income (loss) per share is calculated by dividing net income (loss) for the period by the weighted-average number of common shares outstanding for the period without consideration of potential common shares. Diluted net income (loss) per share is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding for the period and dilutive potential common shares for the period determined using the treasury-stock method. For purposes of this calculation, options to purchase common stock and restricted stock unit awards are considered to be potential common shares and are not included in the calculation of diluted net loss per share because their effect is anti-dilutive.

Options to purchase 1.0 million and 1.1 million shares of the Company’s common stock were outstanding during each of the three and six months ended June 30, 2014 and 57,000 and 98,000 restricted stock units were outstanding during each of the three and six months ended June 30, 2014, but were not included in the computation of diluted net loss per share because their effect is anti-dilutive.  Options to purchase 1.5 million shares of the Company’s common stock were outstanding during each of the three and six months ended June 30, 2013 and 126,000 and 116,000 restricted stock units were outstanding during each of the three and six months ended June 30, 2013, but were not included in the computation of diluted net loss per share because their effect is anti-dilutive.