Note 2 - Net Income Per Share

3 Months Ended

Apr. 03, 2021

Notes to Financial Statements

Earnings Per Share [Text Block]

Our calculation of the diluted share count includes the number of shares from our equity awards with market conditions or performance conditions that would be issuable under the terms of such awards at the end of the reporting period. For equity awards with a market condition, the number of shares included in the diluted share count as of April 3, 2021 is determined by measuring the achievement of the market condition as of the end of the reporting period. For equity awards with performance conditions, no shares are included in the diluted share count as of April 3, 2021, as vesting of future tranches of these awards is contingent upon achievement of the performance conditions over certain periods of time, which has not yet been achieved. See "Note 9 - Stock-Based Compensation" to our consolidated financial statements for further discussion of our equity awards with market conditions or performance conditions.

A summary of basic and diluted Net income per share is presented in the following table:

	Three Months Ended
	April 3,		March 28,
(in thousands, except per share data)	2021		2020
Net income	$	18,813	$	8,167
Shares used in basic Net income per share		136,401		134,253
Dilutive effect of stock options, RSUs, ESPP shares, and equity awards with a market condition or performance condition		5,273		3,791
Shares used in diluted Net income per share		141,674		138,044
Basic Net income per share	$	0.14	$	0.06
Diluted Net income per share	$	0.13	$	0.06

The computation of diluted Net income per share excludes the effects of stock options, restricted stock units ("RSUs"), Employee Stock Purchase Plan ("ESPP") shares, and equity awards with a market condition or performance condition that are antidilutive, aggregating approximately the following number of shares:

	Three Months Ended
	April 3,		March 28,
(in thousands)	2021		2020
Stock options, RSUs, ESPP shares, and equity awards with a market condition or performance condition excluded as they are antidilutive		350		1,056