Net Income Per Share

9 Months Ended

Sep. 30, 2020

Net Income Per ShareBasic net income per share is computed by dividing net income for the period by the weighted-average number of shares outstanding during the period. In periods of net loss, all potential common shares are anti-dilutive, so diluted net loss per share equals the basic net loss per share. In periods of net income, diluted net income per share is computed by dividing net income for the period by the basic weighted-average number of shares plus any dilutive potential common stock outstanding during the period, using the treasury stock method. Potential common stock includes the effect of outstanding dilutive stock options, restricted stock awards, and restricted stock units, as well as shares the Company could be obligated to issue from its convertible senior notes and warrants, as described in Note 9, Convertible Senior Notes. Any anti-dilutive weighted-average dilutive shares related to stock award plans, convertible senior notes, and warrants are excluded from the computation of the diluted net income per share.

The basic and diluted net income per share calculations for the three and nine months ended September 30, 2020 and 2019 were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019

	(In thousands, except per share data)
Net income	$	8,805	$	19,983	$	15,817	$	39,243
Weighted-average shares outstanding - basic	42,802		41,771		42,606		41,283
Effect of dilutive securities from stock award plans	889		1,281		1,045		1,513
Effect of dilutive convertible senior notes and warrants	—		—		—		—
Weighted-average shares outstanding - diluted	43,691		43,052		43,651		42,796


Net income per share - basic	$	0.21	$	0.48	$	0.37	$	0.95
Net income per share - diluted	$	0.20	$	0.46	$	0.36	$	0.92

Anti-dilutive weighted-average shares related to stock award plans	2,328		1,060		2,076		832
Anti-dilutive weighted-average shares related to convertible senior notes and warrants	11,816		—		11,816		—