Note 2 - Net Income Per Share

9 Months Ended

Oct. 02, 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 the end of each period presented is determined by measuring the achievement of the market condition as of the end of the respective reporting periods. For equity awards with an EBITDA performance condition, the number of shares that qualified for vestingas of the end of each period presented are included in the diluted share count when the condition for their issuance was satisfied by the end of the respective reporting periods. For equity awards granted in fiscal 2021 with a year-over-year revenue growth performance condition, no shares are included in the diluted share count as of October 2, 2021, as vesting of these awards is contingent upon achievement of the performance condition over certain periods of time, which have not yet transpired.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				Nine Months Ended
	October 2,		September 26,		October 2,		September 26,
(in thousands, except per share data)	2021		2020		2021		2020
Net income	$	26,739	$	12,607	$	67,390	$	31,403
Shares used in basic Net income per share		136,638		135,598		136,476		134,903
Dilutive effect of stock options, RSUs, ESPP shares, and equity awards with a market condition or performance condition		4,994		5,926		5,687		5,860
Shares used in diluted Net income per share		141,632		141,524		142,163		140,763
Basic Net income per share	$	0.20	$	0.09	$	0.49	$	0.23
Diluted Net income per share	$	0.19	$	0.09	$	0.47	$	0.22

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		Nine Months Ended
	October 2,	September 26,	October 2,	September 26,
(in thousands)	2021	2020	2021	2020
Stock options, RSUs, ESPP shares, and equity awards with a market condition or performance condition excluded as they are antidilutive	358	370	182	514