NET INCOME PER SHARE

6 Months Ended

Jun. 30, 2014

Earnings Per Share [Abstract]

NET INCOME PER SHARE

NET INCOME (LOSS) PER SHARE

Basic and diluted net income (loss) per share was as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
	(In thousands, except per share amounts)
			(As adjusted)*				(As adjusted)*
Basic net income (loss) per share:
Net income (loss)	$	4,825	$	1,520	$	7,031	$	(4,508	)
Weighted average common shares outstanding	32,398		27,873		32,336		27,834
Basic net income (loss) per common share	$	0.15	$	0.05	$	0.22	$	(0.16	)
Diluted net income (loss) per share:
Net income (loss)	$	4,825	$	1,520	$	7,031	$	(4,508	)
Weighted average common shares outstanding — Basic	32,398		27,873		32,336		27,834
Effect of dilutive securities:
Stock options and restricted stock	406		245		460		—
Weighted average common shares for diluted earnings per share	32,804		28,118		32,796		27,834
Diluted net income (loss) per common share	$	0.15	$	0.05	$	0.21	$	(0.16	)

* See Note 1 of these condensed consolidated financial statements for discussion of the impact of the change in accounting for the medical device excise tax.

At June 30, 2014 and 2013, the Company had 1.4 million and 1.7 million of outstanding stock options, respectively. The Company also has warrants outstanding relating to its 2016 Notes at June 30, 2014 and 2013 and the Company's 2016 Notes are convertible to common shares in certain circumstances (see Note 5). Stock options, restricted stock, warrants and the excess conversion value of the 2016 Notes are included in the diluted earnings per share calculation using the treasury stock method, unless the effect of including the such items would be anti-dilutive.

For the three months ended June 30, 2014 and 2013, 0.2 million, and 1.0 million, respectively, of anti-dilutive stock options were excluded from the diluted earnings per share calculation. For the six months ended June 30, 2014, 0.2 million of anti-dilutive stock options were excluded, and for the six months ended June 30, 2013, all stock options, and all restricted stock were excluded from the diluted earnings per share calculation using the treasury stock method because of their anti-dilutive effect. The effect of outstanding warrants were anti-dilutive because the strike price of the warrants exceeded the Company’s average stock price for the periods, and the potential excess conversion value of the 2016 Notes were anti-dilutive because the conversion price exceeded the Company's stock price; therefore, these amounts have been excluded from the diluted earnings per share calculation in all periods presented.