Net Income Per Share

12 Months Ended

Dec. 31, 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 10, 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 years ended December 31, 2020, 2019, and 2018 were as follows:


	Year Ended December 31,
	2020		2019		2018

	(In thousands, except per share data)
Net income	$	32,194	$	61,338	$	37,729
Weighted-average shares outstanding - basic	42,583		41,462		39,242
Effect of dilutive securities from stock award plans	1,160		1,481		1,317
Effect of convertible senior notes and warrants	—		—		—
Weighted-average shares outstanding - diluted	43,743		42,943		40,559
Net income per share - basic	$	0.76	$	1.48	$	0.96
Net income per share - diluted	$	0.74	$	1.43	$	0.93

Anti-dilutive weighted-average shares related to stock award plans	2,054		926		1,279
Anti-dilutive weighted-average shares related to convertible senior notes and warrants	11,816		—		—