Net Income (Loss) Per Share

9 Months Ended

Sep. 30, 2015

4. Net Income (Loss) Per Share

The following table sets forth the computation of basic and diluted net income (loss) per share (in thousands, except per share data).

	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2015			2014		2015			2014
Net income (loss)	$	(3,018	)	$	2,120	$	(2,217	)	$	6,100
Weighted average common basic shares		41,041			40,995		41,026			40,981
Effect of dilutive securities		-			302		-			304
Weighted average common dilutive shares		41,041			41,297		41,026			41,285
Basic and diluted net income (loss) per share	$	(0.07	)	$	0.05	$	(0.05	)	$	0.15

For the three and nine months ended September 30, 2015, the computation of diluted net loss per share did not include options to purchase 825 thousand shares, a dilutive effect of 335 thousand shares and 324 thousand shares, respectively, since their inclusion would have been anti-dilutive. Options to purchase 260 thousand shares were not included in the computation of diluted net loss per share for the three and nine months ended September 30, 2015, since their exercise price was in excess of the average stock prices for these periods.

On March 10, 2015, the Compensation Committee of the Board of Directors of the Company awarded 141 thousand restricted stock units to executive officers. Such restricted stock units will vest, and an equal number of shares of common stock will be deliverable upon the third anniversary of the date of grant. Compensation expense related to the units was calculated based upon the closing market price of the common stock on the date of grant ($2.44) and is recorded on a straight-line basis over the vesting period. For the three and nine months ended September 30, 2015, the computation of diluted net loss per share did not include these units, a dilutive effect of 30 thousand and 19 thousand shares, respectively, since their inclusion would have been anti-dilutive..

For the three and nine months ended September 30, 2014, the computation of diluted net income per share included 5 thousand shares of unvested restricted common stock and exercisable options to purchase 825 thousand shares that had a dilutive effect of 297 thousand shares and 299 thousand shares, respectively. Options to purchase 345 thousand shares were not included in the computation of diluted net income per share for the three and nine months ended September 30, 2014, since their exercise prices were in excess of the average stock prices for these periods.