Net Income Per Share

9 Months Ended

Sep. 30, 2018

10. NET INCOME (LOSS) PER SHARE:

Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Net income per diluted share is computed by dividing net income by the weighted average number of common and common equivalent shares outstanding during the period. Common equivalent shares consist of common shares to be issued upon exercise of stock options, upon vesting of restricted stock units, upon vesting of restricted shares and from purchases of shares under our Employee Stock Purchase Plan, as calculated using the treasury stock method. All common equivalent shares were excluded from the calculation of net loss per diluted share due to their anti-dilutive effect. The components of net income (loss) per basic and diluted share were as follows:


(In thousands except per share amounts)	Net Income		Weighted Average Shares Outstanding	Per Share Amount
Three Months Ended September 30, 2018
Basic	$	1,067	7,041	$	0.15
Dilutive effect of common equivalent shares	—		258	—
Dilutive	$	1,067	7,299	$	0.15


(In thousands except per share amounts)	Net Loss			Weighted Average Shares Outstanding	Per Share Amount
Three Months Ended September 30, 2017
Basic	$	(72	)	6,959	$	(0.01	)
Dilutive effect of common equivalent shares	—			—	—
Dilutive	$	(72	)	6,959	$	(0.01	)

(In thousands except per share amounts)	Net Income		Weighted Average Shares Outstanding	Per Share Amount
Nine Months Ended September 30, 2018
Basic	$	1,634	7,012	$	0.23
Dilutive effect of common equivalent shares	—		164	—
Dilutive	$	1,634	7,176	$	0.23

(In thousands except per share amounts)	Net Income		Weighted Average Shares Outstanding	Per Share Amount
Nine Months Ended September 30, 2017
Basic	$	809	6,939	$	0.12
Dilutive effect of common equivalent shares	—		102	(0.01		)
Dilutive	$	809	7,041	$	0.11

Potentially dilutive shares excluded from the calculations of net income (loss) per diluted share due to their anti-dilutive effect were as follows: 118,000 shares in the three months ended September 30, 2018; 285,000 shares in the nine months ended September 30, 2018; 575,000 shares in the three months ended September 30, 2017; and 411,000 shares in the nine months ended September 30, 2017.