(

)

Income Per Share

Basic income per share is based on the weighted average number of shares of common stock outstanding. Diluted income per share is based upon the weighted average number of common shares outstanding and dilutive common stock equivalent shares outstanding during each period.

The weighted average number of shares used to compute basic and diluted net income per share consisted of the following (in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2018		2017		2018		2017
Basic weighted average common shares outstanding		7,347		7,239		7,336		7,228
Weighted average common equivalent shares due to stock options and RSUs		66		84		72		84
Diluted weighted average common shares outstanding		7,413		7,323		7,408		7,312

The computation of diluted earnings per share excludes the effect of the potential exercise of stock awards, including stock options, when the average market price of the common stock is lower than the exercise price of the related options during the period. These outstanding stock awards are

not

included in the computation of diluted income per share because the effect would be antidilutive. For the

three

- and

six

-month periods ended

June 30, 2018

, the number of antidilutive stock awards excluded from the computation of diluted earnings per share was

24,280

and

25,344,

respectively. For the

three

- and

six

-month periods ended

June 30, 2017

, the number of antidilutive stock awards excluded from the computation of diluted earnings per share was

12,336

and

27,336,

respectively.