Income (Loss) per Share

9 Months Ended

Sep. 30, 2016

Income (Loss) per Share

Income (Loss) per Share

5.  Income (loss) per Share

Basic income (loss) per share is calculated based upon the weighted-average number of shares outstanding during the period. Diluted income per share gives effect to all potential dilutive shares outstanding during the period, such as stock options, nonvested deferred stock units and restricted stock units (collectively referred to herein as “RSUs”), and shares issuable under the Company’s Employee Stock Purchase Plan, or the ESPP.

For the three months ended September 30, 2016, options to purchase 1,357,154 shares of stock with a weighted-average exercise price of $29.31 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. For the nine months ended September 30, 2016, options to purchase 4,510,729 shares of stock with a weighted-average exercise price of $19.84 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 and nine months ended September 30, 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 ESPP are anti-dilutive. Total shares excluded from the three and nine months ended September 30, 2015, net loss per share were 12,471,789 stock options, 877,665 nonvested RSUs, and 165,167 shares issuable under the ESPP.

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2016		2015		2016		2015
	(in thousands, except per share data)
Basic and dilutive numerator:
Net income (loss)	$	3,890	$	(3,008)	$	13,274	$	(10,320)
Denominator:
Weighted-average shares outstanding — basic		45,398		45,310		45,132		44,920
Net effect of dilutive securities:
Incremental shares from equity awards		2,555		—		1,233		—
Weighted-average shares outstanding — diluted		47,953		45,310		46,365		44,920
Net income (loss) per share — basic	$	0.09	$	(0.07)	$	0.29	$	(0.23)
Net income (loss) per share — diluted	$	0.08	$	(0.07)	$	0.29	$	(0.23)