Income (Loss) per Share

3 Months Ended

Mar. 31, 2017

Income (Loss) per Share

Income (Loss) per Share

5.  Income per Share

Basic income 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 herein as “RSUs”) and shares issuable under the Company’s Employee Stock Purchase Plan, or the ESPP.

For the three months ended March 31, 2017, options to purchase 2,376,234 shares of stock with a weighted-average exercise price of $22.44 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 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.

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

	Three Months Ended
	March 31,
	2017		2016
	(in thousands, except per share data)
Basic and dilutive numerator:
Net income	$	893	$	2,489
Denominator:
Weighted-average shares outstanding — basic		46,069		45,041
Net effect of dilutive securities:
Incremental shares from equity awards		1,988		1,769
Weighted-average shares outstanding — diluted		48,057		46,810
Net income per share — basic	$	0.02	$	0.06
Net income per share — diluted	$	0.02	$	0.05