Earnings per share

3 Months Ended

Mar. 31, 2016

7. Earnings per share

The following table presents the calculation of basic and diluted net loss per share utilizing the if-converted method:

	Three Months Ended March 31,
(in thousands, except share and per share data)	2016		2015
Numerator:
Net income (loss)	$	3,991	$	(21,520	)
Interest expense, net of tax		716		-
Amortization of debt issuance costs, net of tax		215		-
Net income (loss), adjusted	$	4,922	$	(21,520	)

Denominator:
Weighted-average number of shares—basic		39,542,656		37,949,358
Dilutive securities—equity awards		1,096,711		-
Dilutive securities—convertible debt		7,720,525		-
Weighted-average number of shares—diluted		48,359,892		37,949,358

Net income (loss) per share-basic	$	0.10	$	(0.57	)
Net income (loss) per share-diluted	$	0.10	$	(0.57	)

For the three months ended March 31, 2016, basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period.

For the three months ended March 31, 2016, diluted earnings per share is computed using the "if-converted" method by dividing the net income adjusted for interest expense and amortization of debt issuance cost, both net of tax, associated with the Company's 2.875 convertible Senior notes due 2021 (the "Notes") by the weighted average number of shares of common stock outstanding during the period. The weighted average number of shares is adjusted for the potential dilutive effect of the exercise of stock options and the vesting of restricted stock units along with the assumption of the conversion of the Notes, at the beginning of the period.

For the three months ended March 31, 2015, basic and diluted earnings per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. No adjustment to the net loss was computed under the "if-converted" method as the effect would have been anti-dilutive.

For the three months ended March 31, 2015, outstanding stock options to purchase approximately 5.1 million shares of common stock, along with 7.7 million shares related to the Company's convertible debt, were excluded from the calculation of diluted earnings per share.