Net Income (Loss) Per Share

6 Months Ended

Jun. 30, 2016

10.

NET INCOME (LOSS) PER SHARE:

A reconciliation of net income and weighted average shares used in computing basic and diluted net income (loss) per share is as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
	(In Thousands, Except Per Share Data)
Basic net income (loss) per share:
Net income (loss) applicable to common shares	$	1,313	$	494	$	550	$	(446	)

Weighted average common shares outstanding		12,126		11,473		11,959		11,410

Basic net income (loss) per share of common stock	$	0.11	$	0.04	$	0.05	$	(0.04	)


Diluted net income (loss) per share:
Net income (loss) applicable to common shares	$	1,313	$	494	$	550	$	(446	)

Weighted average common shares outstanding		12,126		11,473		11,959		11,410
Dilutive effects of stock options		1,906		1,757		1,917		—

Weighted average common shares, assuming dilutive effect of stock options		14,032		13,230		13,876		11,410

Diluted net income (loss) per share of common stock	$	0.09	$	0.04	$	0.04	$	(0.04	)

Share-based awards, inclusive of all grants made under the Company’s equity plans, for which either the stock option exercise price or the fair value of the restricted share award exceeds the average market price over the period, have an anti-dilutive effect on earnings per share, and accordingly, are excluded from the diluted computations for all periods presented. Had such shares been included, shares for the diluted computation would have increased by approximately 77 thousand shares and 71 thousand shares in the three- and six-month periods ended June 30, 2015, respectively. There were no such anti-dilutive shares outstanding for the three- and six-month periods ended June 30, 2016. As of June 30, 2016 and 2015, there were approximately 3.5 and 4.1 million share-based awards outstanding, respectively, under the Company’s equity plans. Options to purchase 1.8 million shares of common stock that were outstanding during the six months ended June 30, 2015 were not included in the computation of diluted net loss per share due to the reported periodic loss.