Net Income (Loss) per Share

3 Months Ended

Mar. 31, 2017

12. Net Income (Loss) per Share

Basic and diluted net income (loss) per share is computed by dividing the net loss by the weighted-average number of common shares outstanding during the period. The computation of net income (loss) per share for each period, including the number of weighted-average shares outstanding, is shown on the face of the condensed consolidated statements of operations. Diluted earnings per share is calculated using our weighted-average outstanding common shares including the dilutive effect of stock awards as determined under the treasury stock method. In periods when we recognize a net loss, we exclude the impact of outstanding stock awards from the diluted loss per share calculation as their inclusion would have an antidilutive effect.

The table below shows the reconciliation of the basic and diluted shares for the three months ended March 2017, in thousands:

	For the three months ended March 31,
	2017		2016
Weighted average number of shares outstanding:
Basic		33,207		31,843
Dilutive effects of:
Employee stock options, RSU’s and share based payment awards issued to employees		564		-
Diluted		33,771		31,843

The following outstanding shares of common stock and potential common shares were excluded from the computation of diluted net income (loss) per share of common stock for the three months ended March 31, 2017 and 2016 because including them would have been antidilutive:

	For the three months ended March 31,
	2017		2016
Stock options to purchase common stock		761,610		1,936,453
Restricted stock units for common stock		598,503		2,553,598
Restricted stock issued in connection with Skyfence acquisition		—		219,969