12. Net Income (Loss) per Share

Basic and diluted net income (loss) per share is computed by dividing net income (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 the Company recognizes a net loss, the Company excludes 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 31, 2018, in thousands:

	For the three months ended March 31,
	2018		2017
Weighted average number of shares outstanding:
Basic		34,457		33,207
Dilutive effects of:
Employee stock options, RSU’s and share based payment awards issued to employees		-		564
Diluted		34,457		33,771

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, 2018 and 2017 because the impact of them would have been antidilutive:

	For the three months ended March 31,
	2018		2017
Stock options to purchase common stock		736,073		761,710
Restricted stock units for common stock		2,665,737		598,503
Employee share purchase plan		111,357		-