NET INCOME (LOSS) PER COMMON SHARE

9 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

NET INCOME (LOSS) PER COMMON SHARE

NET INCOME (LOSS) PER COMMON SHARE

Basic earnings per common share is calculated using the weighted‑average number of common shares outstanding during the period less the weighted‑average shares subject to repurchase. Diluted earnings per common share gives effect to dilutive common stock subject to repurchase, stock options (calculated based on the treasury stock method), shares purchased under the employee stock purchase plan and convertible debt (calculated using an as-if-converted method).

The following table sets forth a reconciliation of basic and diluted net income (loss) per common share (in thousands except per common share amounts):

	Three Months Ended   September 30,					Nine Months Ended   September 30,
	2015			2014		2015		2014
Net income (loss)	$	(5,336	)	$	2,384	$	6,056	$	(9,001	)
Shares used in computing basic net income (loss) per common share	79,856			73,413		77,930		72,955
Add effect of dilutive securities:
Employee stock options	—			1,170		1,433		—
Employee stock purchase plan	—			—		4		—
Restricted stock and restricted stock units	—			1,732		1,541		—
Shares used in computing diluted net income (loss) per common share	79,856			76,315		80,908		72,955
Basic net income (loss) per common share	$	(0.07	)	$	0.03	$	0.08	$	(0.12	)
Diluted net income (loss) per common share	$	(0.07	)	$	0.03	$	0.07	$	(0.12	)

The potential dilutive securities excluded from diluted net income (loss) per common share were as follows (in thousands):

	Three Months Ended September 30,		Nine Months Ended September 30,
	2015	2014	2015	2014
Employee stock options	3,471	3,283	2,038	4,452
Employee stock purchase plan	218	174	218	88
Restricted stock and restricted stock units	3,804	1,918	2,263	3,650
Convertible notes	17,857	17,857	17,857	17,857
Total	25,350	23,232	22,376	26,047