Note 9 - Net Income (Loss) Per Share

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Earnings Per Share [Text Block]

NOTE

9

—NET INCOME (LOSS) PER SHARE

Basic net income (loss) per share is computed using the weighted-average number of shares outstanding during the period. In periods of net income, diluted shares outstanding include the dilutive effect of in-the-money equity awards (stock options, rest

ricted stock units, performance stock units and employee stock purchase plan contributions), which is calculated based on the average share price for each fiscal period using the treasury stock method. In accordance with ASC

718,

the assumed proceeds under the treasury stock method include the average unrecognized compensation expense of in-the-money stock options and restricted stock units. This results in the assumed buyback of additional shares, thereby reducing the dilutive impact of equity awards

.

Dil

uted earnings per share is the same as basic earnings per share for the periods in which the Company had a net loss because the inclusion of outstanding common stock equivalents would be anti-dilutive.

The following table sets forth the computation of basic and diluted net income (loss) and the weighted average number of shares used in computing basic and diluted net income (loss) per share (in thousands, except per share data):

	Year Ended December 31,
	2017		2016		2015
Numerator:
Net Income  (loss)	$	29,993	$	2,577	$	(4,440	)
Denominator:
Weighted-average shares outstanding in basic calculation		13,873		13,225		13,960
Add: dilutive effect of potential common shares		855		528		—
Weighted-average shares used in computing diluted net income per share		14,728		13,753		13,960
Net income  (loss) per share:
Net income (loss) per share, basic	$	2.16	$	0.19	$	(0.32	)
Net income (loss) per share, diluted	$	2.04	$	0.19	$	(0.32	)

T

he following number of weighted shares outstanding, prior to the application of the treasury stock method, were excluded from the computation of diluted net income (loss) per common share for the years presented because including them would have had an anti-dilutive effect (in thousands):

	Year Ended December 31,
	201 7		201 6		201 5
Options to purchase common stock		42		220		2,575
Restricted stock units		9		24		296
Employee stock purchase plan shares		—		—		93
Performance stock units		—		—		24
Total		51		244		2,988