Income (Loss) per Share

3 Months Ended

Mar. 31, 2016

5. Income (loss) per Share

Basic loss per share is calculated based upon the weighted-average number of shares outstanding during the period and contingently issuable shares such as fully vested deferred stock units, or DSUs, and in 2015, such equity was issued as restricted stock units, or RSUs (such RSUs and DSUs are collectively referred to herein as RSUs), in addition to shares expected to be issued under the Company’s employee stock purchase plan, or ESPP, as of the date all necessary conditions for issuance have been met. Diluted income per share gives effect to all potential dilutive shares outstanding during the period, such as stock options, nonvested RSUs and shares issuable under the Company’s ESPP.

For the three months ended March 31, 2016, options to purchase 10,013,154 shares of stock with a weighted-average exercise price of $16.37 per share, were excluded in the computation of diluted net income per share because the effect from the assumed exercise of these options would be anti-dilutive.

As the Company reported a net loss for the three months ended March 31, 2015, the diluted net loss per share, as reported, is equal to the basic net loss per share since the effect of the assumed exercise of stock options vesting of nonvested RSUs and issuance of common shares under the Company’s ESPP are anti-dilutive. Total stock options, nonvested RSUs, and shares issuable under the Company’s ESPP, excluded from the three months ended March 31, 2015, net loss per share were 13,180,428; 857,319, and 165,167, respectively.

The following table provides the calculation of basic and diluted net loss per share for each of the periods presented:


	Three Months Ended
	March 31,
	2016		2015
	(in thousands, except per share data)
Basic and dilutive numerator:
Net income (loss)	$	2,489	$	(665)
Denominator:
Shares outstanding		45,041		44,601
Contingently issuable shares – vested RSUs		—		—
Weighted-average shares outstanding — basic		45,041		44,601

Net effect of dilutive securities:
Stock options		405		—
Contingently issuable shares – nonvested RSUs		1,302		—
Contingently issuable shares – ESPP		62		—
Weighted-average shares outstanding — diluted		46,810		44,601
Net income (loss) per share — basic	$	0.06	$	(0.01)
Net income (loss) per share — diluted	$	0.05	$	(0.01)