NET LOSS PER SHARE

The Company has a share-based compensation plan under which employees may be granted share-based awards including shares of restricted stock and restricted stock units ("RSUs"). Non-forfeitable dividends are paid on unvested shares of restricted stock. No dividends are accrued or paid on unvested RSUs. As such, shares of restricted stock are considered participating securities under the two-class method of calculating earnings per share. The two-class method of calculating earnings per share did not have a material impact on the Company’s loss per share calculation for the three and six months ended June 30, 2018 and 2017.

The following table sets forth the computation of basic and diluted shares (in thousands):



	Three Months Ended			Six Months Ended
	June 30, 2018	June 30, 2017		June 30, 2018	June 30, 2017
Denominator:
Weighted average common shares outstanding	49,060	49,477		49,110	49,264
Less: shares of restricted stock subject to repurchase	—	(2	)	—	(3	)
Total common shares-basic	49,060	49,475		49,110	49,261
Effect of dilutive securities:
Options	—	—		—	—
Restricted stock awards and units	—	—		—	—
Total common shares-diluted	49,060	49,475		49,110	49,261

Basic net income (loss) per share is computed using the weighted average number of common shares outstanding during the period, excluding any unvested restricted stock awards that are subject to repurchase. Diluted net income (loss) per share is computed using the treasury stock method to calculate the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential dilutive common shares include unvested restricted stock awards and units and incremental common shares issuable upon the exercise of stock options, less shares from assumed proceeds. The assumed proceeds calculation includes actual proceeds to be received from the employee upon exercise and the average unrecognized stock compensation cost during the period.

For the three and six months ended June 30, 2018, there was no difference in the weighted average number of common shares used for the calculation of basic and diluted loss per share as the effect of all potentially dilutive shares outstanding was anti-dilutive. A total of 2.9 million and 2.9 million shares subject to stock options and restricted stock awards and units were excluded from the computation of diluted net loss per share for the three and six months ended June 30, 2018, respectively, because including them would have been anti-dilutive.

For the three and six months ended June 30, 2017, there was no difference in the weighted average number of common shares used for the calculation of basic and diluted loss per share as the effect of all potentially dilutive shares outstanding was anti-dilutive. A total 0.7 million and 1.1 million shares subject to stock options and restricted stock awards and units were excluded from the computation of diluted net loss per share for the three and six months ended June 30, 2017, respectively, because including them would have been anti-dilutive.