Net Income (Loss) Per Share

3 Months Ended

Mar. 28, 2014

Earnings Per Share [Abstract]

Net Income (Loss) Per Share

6. Net Income (Loss) Per Share

Basic net income (loss) per share excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted net income (loss) per share reflects the potential dilution that would occur if outstanding securities or other contracts to issue common stock were exercised or converted into common stock.

The following is a reconciliation of the numerators and denominators used in computing basic and diluted net income (loss) per share (in thousands, except per share data):

	Three months ended
	March 28, 2014		March 29, 2013
Numerator:
Net income (loss)	$	7,056	$	(311	)
Denominator:
Shares used in computation — basic:
Weighted average common shares outstanding		28,877		27,978
Shares used in computation — diluted:
Weighted average common shares outstanding		28,877		27,978
Dilutive effect of common shares outstanding subject to repurchase		664		—
Dilutive effect of options outstanding		377		—
Shares used in computing diluted net income (loss) per share		29,918		27,978
Net income (loss) per share — basic	$	0.24	$	(0.01	)
Net income (loss) per share — diluted	$	0.24	$	(0.01	)

The Company had securities outstanding which could potentially dilute basic earnings per share in the future, but the incremental shares from the assumed exercise of these securities were excluded in the computation of diluted net income (loss) per share, as their effect would have been anti-dilutive. Such outstanding securities consisted of 288,237 stock options outstanding as of March 28, 2014 and 1,020,222 stock options outstanding as of March 29, 2013.