Earnings Per Share

6 Months Ended

Jun. 30, 2015

Basic earnings per share is calculated by dividing net income available to common stockholders by the weighted-average number of shares outstanding during the period. The holders of unvested RSAs do not have nonforfeitable rights to dividends or dividend equivalents and therefore, such unvested awards do not qualify as participating securities and are excluded from the basic earnings per share calculation. Diluted earnings per share includes the determinants of basic net income per share and, in addition, gives effect to the potential dilution that would occur if securities or other contracts to issue common stock are exercised, vested, or converted into common stock, unless they are antidilutive. As the Company intends to settle the principal amount of the Notes (see Note 6, "Debt") in cash upon conversion, their dilutive effect, if any, will be reflected in diluted earnings per share using the treasury stock method, which considers the number of shares that would be required to settle any premium above principal at the average stock price for the period. During the three and six months ended June 30, 2015, the average price of the Company's stock was below the conversion price of the Notes; as a result the Notes were not dilutive for this period.

A reconciliation of the numerator and denominator of basic earnings per share and diluted earnings per share for the three and six months ended June 30, 2015 and 2014 is shown in the following table (in thousands, except per share data):



	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Numerator
Net income	$	1,513	$	2,296	$	1,670	$	481
Denominator
Denominator for basic earnings per share:
Weighted average common shares outstanding	53,647		52,457		53,453		52,284
Denominator for diluted earnings per share:
Dilutive potential common shares:
Stock options	916		1,141		953		1,274
Restricted stock awards and units	450		567		518		721
Performance-based restricted stock units	1,178		663		1,126		717
Employee stock purchase plan	—		—		—		2
Weighted average common shares outstanding with assumed conversion	56,191		54,828		56,050		54,998
Basic earnings per share	0.03		$	0.04	$	0.03	$	0.01
Diluted earnings per share	0.03		$	0.04	$	0.03	$	0.01

Antidilutive common stock equivalents excluded from the calculation of dilutive earnings per share for the three and six months ended June 30, 2015 and 2014 are shown in the following table (in thousands, except per share data):



	Three Months Ended June 30,		Six Months Ended June 30,
	2015	2014	2015	2014
Stock options	362	417	440	289
Restricted stock awards and units	9	285	24	46
Performance-based restricted stock units	1	156	1	116
Employee stock purchase plan	220	266	220	—
Total	592	1,124	685	451