Net Income (Loss) Per Common Share

9 Months Ended

Sep. 30, 2016

11. Net Income (Loss) per Common Share

Basic net income (loss) per share is calculated using the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share gives effect to dilutive stock options and warrants. The Company uses the treasury-stock method to compute diluted earnings per share with respect to its stock options and warrants. The following table sets forth a reconciliation of basic and diluted net income (loss) per share (in thousands except share and per share amounts):

	Three Months Ended September 30,					Nine Months Ended September 30,
	2016			2015		2016			2015
Net income (loss)	$	(35,051	)	$	567	$	(61,582	)	$	(42,309	)
Shares used in computing basic net income (loss) per common share		65,134,102			62,274,438		64,472,947			38,674,889
Add effect of dilutive securities:
Options to purchase common stock		—			8,514,752		—			—
Common stock warrants		—			936,928		—			—
Shares used in computing diluted net income (loss) per common share		65,134,102			71,726,118		64,472,947			38,674,889
Net income (loss) per common share, basic	$	(0.54	)	$	0.01	$	(0.96	)	$	(1.09	)
Net income (loss) per common share, diluted	$	(0.54	)	$	0.01	$	(0.96	)	$	(1.09	)

The following securities were excluded from diluted net income (loss) per common share because their inclusion would be anti-dilutive:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2016		2015		2016		2015
Options to purchase common stock		10,544,907		285		10,544,907		9,889
Restricted stock units		660,800		—		660,800		—
Common stock warrants		97,740		3		97,740		947
Total		11,303,447		288		11,303,447		10,836