Net Income (Loss) Per Share

9 Months Ended

Sep. 30, 2017

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


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017		2016
	(in thousands, except share
	and per share data)
Numerator:
Net income (loss) attributable to common stockholders	$	(15,562)	$	(8,077)	$	(37,082)	$	32,690
Denominator:
Weighted-average common shares outstanding, basic		46,929,498		41,033,973		46,766,562		40,814,587
Dilutive effect of stock options		—		—		—		1,046,774
Weighted average common shares outstanding, diluted		46,929,498		41,033,973		46,766,562		41,861,361

Net income (loss) per share, basic	$	(0.33)	$	(0.20)	$	(0.79)	$	0.80
Net income (loss) per share, diluted	$	(0.33)	$	(0.20)	$	(0.79)	$	0.78

For the three and nine months ended September 30, 2017 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. For the three months ended September 30, 2016 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. For the nine months ended September 30, 2016, there were no shares from the Company’s employee stock purchase plan that had a dilutive effect on shares outstanding.