10.

NET (LOSS) INCOME PER SHARE:

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


	Three Months Ended September 30,					Nine Months Ended September 30,
	2017			2016		2017			2016
	(In Thousands, Except Per Share Data)
Basic net (loss) income per share:
Net (loss) income applicable to common shares	$	(172	)	$	43	$	(3,719	)	$	593

Weighted average common shares outstanding		13,924			12,253		13,497			12,057

Basic net (loss) income per share of common stock	$	(0.01	)	$	0.00	$	(0.28	)	$	0.05

Diluted net (loss) income per share:
Net (loss) income applicable to common shares	$	(172	)	$	43	$	(3,719	)	$	593

Weighted average common shares outstanding		13,924			12,253		13,497			12,057
Dilutive effects of stock options		—			1,837		—			2,023

Weighted average common shares, assuming dilutive effect of stock options		13,924			14,090		13,497			14,080

Diluted net (loss) income per share of common stock	$	(0.01	)	$	0.00	$	(0.28	)	$	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 542 thousand shares and 148 thousand shares in the three- and nine-month periods ended September 30, 2017, respectively. There were no such anti-dilutive shares outstanding for the three- and nine-month periods ended September 30, 2016. Options to purchase 534 thousand and 760 thousand shares of common stock that were outstanding during the three- and nine-months ended September 30, 2017, respectively, were not included in the computation of diluted net loss per share due to the reported periodic net loss. As of September 30, 2017 and 2016, there were approximately 1.8 million and 3.5 million share-based awards outstanding, respectively, under the Company’s equity plans.