Note 2 - Net Income per Share

9 Months Ended

Sep. 27, 2025

Notes to Financial Statements

Earnings Per Share [Text Block]

Note 2 - Net Income per Share

We compute basic earnings per share based on the weighted average number of shares of common stock outstanding during the period. We compute diluted earnings per share based on the weighted average number of shares of common stock outstanding plus potentially dilutive shares of common stock outstanding during the period, if applicable. Potentially dilutive shares of common stock from employee equity incentive awards are determined by applying the treasury stock method to the assumed exercise of outstanding stock options, the assumed vesting of outstanding restricted stock units ("RSUs") and restricted stock awards ("RSAs"), and the assumed issuance of common stock under the stock purchase plan.

Our calculation of potentially dilutive shares 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 a performance condition, the number of shares that qualified for vesting as 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. 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
	September 27,		September 28,		September 27,		September 28,
(In thousands, except per share data)	2025		2024		2025		2024
Net income	$	2,794	$	7,190	$	10,729	$	44,617
Shares used in basic Net income per share		136,877		137,709		137,224		137,577
Dilutive effect of employee equity incentive awards		1,226		185		845		697
Shares used in diluted Net income per share		138,103		137,894		138,069		138,274
Basic Net income per share	$	0.02	$	0.05	$	0.08	$	0.32
Diluted Net income per share	$	0.02	$	0.05	$	0.08	$	0.32

The computation of diluted Net income per share excludes the effects of employee equity incentive awards that are antidilutive, aggregating approximately 0.7 million and 2.4 million shares for the third quarters of fiscal 2025 and 2024, respectively, and approximately 0.9 million and 1.0 million shares for the first nine months of fiscal 2025 and 2024, respectively.