Computation of Basic and Diluted Net Loss Per Common Share

9 Months Ended

Oct. 01, 2016

Computation of Basic and Diluted Net Loss Per Common Share

8. Computation of Basic and Diluted Net Loss Per Common Share

Basic and diluted net loss per share is based upon the weighted average number of common shares outstanding during the period. Common stock equivalents consist of incremental common shares issuable upon the exercise of stock options, and the release (vesting) of restricted stock units and awards and are calculated under the treasury stock method. Common stock equivalent shares from unexercised stock options, and unvested restricted stock units and awards are excluded from the computation for periods in which we incur a net loss or if the exercise price of such options is greater than the average market price of our common stock for the period as their effect would be anti-dilutive.

For the three and nine months ended October 1, 2016, stock options to purchase 462,386 shares of common stock, 335,805 RSUs and 1,289 restricted stock awards were excluded from the computation of diluted weighted average shares outstanding because the effect of such would be anti-dilutive.

For the three and nine months ended October 3, 2015, stock options to purchase 234,958 shares of common stock, 147,589 RSUs and 2,513 restricted stock awards were excluded from the computation of diluted weighted average shares outstanding because the effect of such would be anti-dilutive.

A reconciliation of the numerator and denominator of basic and diluted net loss per common share is provided as follows:

	Three Months Ended					Nine Months Ended
	October 1, 2016			October 3, 2015		October 1, 2016			October 3, 2015
Numerator:
Net (loss) income	$	(671	)	$	442	$	(898	)	$	36
Denominator:
Weighted average shares of common stock (basic)		10,129			9,972		10,083			9,956
Effect of dilutive stock options		—			117		—			174
Effect of dilutive contingent shares		—			5		—			12
Weighted average shares of common stock (diluted)		10,129			10,094		10,083			10,142
Per share data:
Basic net (loss) income per share	$	(0.07	)	$	0.04	$	(0.09	)	$	—
Diluted net (loss) income per share	$	(0.07	)	$	0.04	$	(0.09	)	$	—