EARNINGS PER SHARE

6 Months Ended

Jun. 30, 2020

EARNINGS PER SHARE:Basic earnings per share are calculated by dividing net income by the weighted-average shares of common stock outstanding during the period. Diluted earnings per share are calculated by dividing net income by the weighted-average shares of common stock and dilutive common equivalent shares outstanding during the period. Dilutive common equivalent shares included in this calculation consist of dilutive shares issuable upon the assumed exercise of outstanding common stock options, the

assumed vesting of outstanding restricted stock units, the assumed issuance of awards under the stock purchase plan and contingently issuable performance-based awards, as computed using the treasury stock method.

A summary of the earnings per share calculation is as follows:


	Three Months Ended						Six Months Ended
(In thousands, except per share amounts)	June 30, 2020		June 30, 2019		June 30, 2020		June 30, 2019
Basic earnings per share:
Net income	$	13,192	$	10,845	$	29,078	$	18,078
Weighted-average common shares	29,856		29,297		29,729		29,125
Basic earnings per share	$	0.44	$	0.37	$	0.98	$	0.62
Diluted earnings per share:⁽¹⁾
Net income	$	13,192	$	10,845	$	29,078	$	18,078
Weighted-average common shares	29,856		29,297		29,729		29,125
Effect of dilutive awards:
Employee stock plans	456		405		503		472
Diluted weighted-average common shares	30,312		29,702		30,232		29,597
Diluted earnings per share	$	0.44	$	0.37	$	0.96	$	0.61

_______________

(1)The Company includes the shares underlying performance-based awards in the calculation of diluted earnings per share if the performance conditions have been satisfied as of the end of the reporting period and excludes such shares when the necessary conditions have not been met. The Company has excluded the shares underlying the outstanding performance-based awards in the 2020 and 2019 calculations as the shares were not contingently issuable as of the end of the reporting periods.

In the three and six months ended June 30, 2020 and 2019, no outstanding stock awards were determined to be anti-dilutive and therefore excluded from the computation of diluted earnings per share.

In July 2020, the Company’s board of directors approved a two-for-one stock split in the form of a stock dividend to stockholders of record as of the close of business on August 14, 2020. Refer to Note 8, Stockholders’ Equity, for additional information. The following table discloses unaudited pro forma weighted average shares outstanding and earnings per share information, as if the additional shares resulting from the stock split had been outstanding since the beginning of each period presented:


	Three Months Ended						Six Months Ended
(In thousands, except per share amounts)	June 30, 2020		June 30, 2019		June 30, 2020		June 30, 2019
Weighted average shares outstanding
Basic	59,712		58,594		59,458		58,250
Diluted	60,624		59,404		60,464		59,194

Earnings per share:
Basic	$	0.22	$	0.19	$	0.49	$	0.31
Diluted	$	0.22	$	0.18	$	0.48	$	0.31