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Net Income (Loss) per Share
 9 Months Ended
Sep. 29, 2018
Earnings Per Share [Abstract]  
Net Income (Loss) per Share
Net Income (Loss) per Share

We compute basic Net income (loss) per share by dividing net income (loss) by the weighted average number of common shares outstanding during the period. To determine diluted share count, we apply the treasury stock method to determine the dilutive effect of outstanding stock option shares, restricted stock units ("RSUs"), and Employee Stock Purchase Plan ("ESPP") shares. Our application of the treasury stock method includes, as assumed proceeds, the average unamortized stock-based compensation expense for the period. When we are in a net loss position, we do not include dilutive securities as their inclusion would reduce the net loss per share.

A summary of basic and diluted Net income (loss) per share is presented in the following table:
 
Three Months Ended
 
Nine Months Ended
(in thousands, except per share data)
September 29,
2018
 
September 30,
2017
 
September 29,
2018
 
September 30,
2017
Net income (loss)
$
6,974

 
$
(43,052
)
 
$
(19,201
)
 
$
(63,349
)
 
 
 
 
 
 
 
 
Shares used in basic Net income (loss) per share
127,816

 
122,990

 
125,578

 
122,393

Dilutive effect of stock options, RSUs and ESPP shares
1,658

 
—

 
—

 
—

Shares used in diluted Net income (loss) per share
129,474

 
122,990

 
125,578

 
122,393

 
 
 
 
 
 
 
 
Basic Net income (loss) per share
$
0.05

 
$
(0.35
)
 
$
(0.15
)
 
$
(0.52
)
Diluted Net income (loss) per share
$
0.05

 
$
(0.35
)
 
$
(0.15
)
 
$
(0.52
)


The computation of diluted Net income (loss) per share excludes the effects of stock options, RSUs, and ESPP shares that are antidilutive, aggregating approximately the following number of shares:
 
Three Months Ended
 
Nine Months Ended
(in thousands)
September 29, 2018
 
September 30, 2017
 
September 29, 2018
 
September 30, 2017
Stock options, RSUs, and ESPP shares excluded as they are antidilutive
2,299

 
7,221

 
8,284

 
6,018



Stock options, RSUs, and ESPP shares are considered antidilutive when the aggregate of exercise price and unrecognized stock-based compensation expense are greater than the average market price for our common stock during the period or when we are in a net loss position, as the effects would reduce the loss per share. Stock options, RSUs, and ESPP shares that are antidilutive at September 29, 2018 could become dilutive in the future.