4. Earnings Per Share

3 Months Ended

Mar. 31, 2015

Net income (loss) per share

4. Earnings Per Share

Basic net income (loss) per share has been computed using the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share has been computed using the weighted-average number of shares of common stock and dilutive potential common shares from stock options, restricted stock units/awards and warrants outstanding during the period. In periods with net losses, normally dilutive shares become anti-dilutive, and therefore for those periods basic and dilutive earnings per share are the same.

The following table sets forth the computation of the basic and diluted net loss per share for the periods indicated (in thousands, except per share amounts):

	Three months ended March 31,
	2015			2014
Numerator:
Net income (loss)	$	(675	)	$	85
Denominator:
Weighted average shares used to compute net income (loss) per share
Basic		14,844			12,792
Effective of dilutive options and warrants		–			996
Diluted		14,844			13,788
Net income (loss) per share
Basic	$	(0.05	)	$	0.01
Diluted	$	(0.05	)	$	0.01

The following potentially dilutive securities were excluded from the computation of diluted net income (loss) per share as their effect would have been anti-dilutive (in thousands):

	Three months ended March 31,
	2015		2014
Employee stock options		412		–
Restricted stock units/awards		4		–
		416		–