Earnings (Loss) Per Share

9 Months Ended

Sep. 30, 2015

(10) Earnings Per Share

Basic earnings (loss) per share (“EPS”) is computed by dividing the net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted EPS is computed using the weighted-average number of shares of common stock outstanding during the period and, when dilutive, potential common shares outstanding during the period. Potential common shares consist of incremental shares issuable upon the assumed exercise of stock options, preferred stock, unvested RSUs and PSUs, and contingent consideration related to the BlueKite Acquisition. The estimated shares of PSUs are excluded in the diluted EPS calculation as the performance conditions were not met by the end of this period.

The following table presents the calculation of earnings (loss) per share (in thousands, except per share data):


		Three months ended September 30,				Nine months ended September 30,
		2015		2014		2015		2014
	(unaudited)
Basic earnings (loss) per share:
Numerator:
Net income (loss)		$	(16,013)	$	398	$	(19,612)	$	2,148
Denominator:
Weighted-average common shares			39,448		38,347		39,147		38,085
Basic earnings (loss) per share		$	(0.41)	$	0.01	$	(0.50)	$	0.06

Diluted earnings per share:
Numerator:
Net income (loss)		$	(16,013)	$	398	$	(19,612)	$	2,148
Denominator:
Weighted-average common shares			39,448		38,347		39,147		38,085
Weighted-average dilutive stock options and RSUs			—		3,330		—		3,531
Contingent stock due to BlueKite Acquisition			—		88		—		85
Weighted-average common shares and equivalents			39,448		41,765		39,147		41,701
Diluted earnings (loss) per share		$	(0.41)	$	0.01	$	(0.50)	$	0.05

The following securities have been excluded from the calculation of diluted earnings (loss) per share of common stock for the periods presented because their effect would have been anti-dilutive (in thousands):


	Three months ended September 30,				Nine months ended September 30,
	2015		2014		2015		2014
	(unaudited)
Stock options outstanding		5,685		1,917		5,935		1,913
Unvested RSUs		850		97		785		56
Contingent stock due to BlueKite Acquisition		44		—		44		—
Total common stock equivalents	6,579		2,014		6,764		1,969