Net Income (Loss) Per Share

6 Months Ended

Jun. 30, 2016

3. Net Income (Loss) Per Share

We compute net income (loss) per common share by dividing the net income (loss) attributable to common stockholders by the weighted-average number of common shares outstanding during the period without consideration of common stock equivalents. Diluted income (loss) per share is computed by dividing the net income (loss) attributable to common stockholders by the weighted-average number of common stock equivalents outstanding for the period. The treasury stock method is used to determine the dilutive effect of the Company’s stock option grants. Potentially dilutive securities consisting of stock issuable under options and our 2013 Employee Stock Purchase Plan (ESPP) are not included in the diluted net loss per common share calculation where the inclusion of such shares would have had an antidilutive effect.

Basic and diluted income (loss) per common share is computed as follows (in thousands except share and per share data):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
	(in thousands, except
	per share data)
Numerator:
Net income (loss) used for calculation of basic and diluted EPS	$	47,165	$	(8,868)	$	40,767	$	(15,312)
Denominator:
Weighted-average shares outstanding, basic		40,800,586		40,389,648		40,703,688		37,518,271
Dilutive effect of stock options		937,874		—		997,574		—
Weighted average shares outstanding, diluted		41,738,460		40,389,648		41,701,262		37,518,271

Net income (loss) per share, basic	$	1.16	$	(0.22)	$	1.00	$	(0.41)
Net income (loss) per share, diluted	$	1.13	$	(0.22)	$	0.98	$	(0.41)

For the three and six months ended June 30, 2016 there were no shares from the Company’s employee stock purchase plan that had a dilutive effect on shares outstanding. For the three and six months ended June 30, 2015, all outstanding potentially dilutive securities have been excluded from the calculation of diluted net loss per common share as the effect of including such securities would have been antidilutive.