NET INCOME (LOSS) PER SHARE

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

NET INCOME (LOSS) PER SHARE

NET INCOME (LOSS) PER SHARE

Basic net income (loss) per common share is computed based on our weighted average number of common shares outstanding. Diluted earnings per share is computed based on our weighted average number of common shares outstanding plus the effect of dilutive stock options, non-vested restricted stock, and deferred stock units, using the treasury stock method. 

When a net loss is reported, potentially issuable common shares are excluded from the computation of diluted earnings per share as their effect would be anti-dilutive.

The following table sets forth the computation of basic and diluted shares for the periods indicated (in thousands):

	Three Months Ended September 30,		Nine Months Ended September 30,
	2017	2016	2017	2016
Shares used in basic earnings per share calculation:	15,977	15,735	15,903	15,718
Effect of dilutive securities:
Stock options	—	414	1,291	—
Restricted stock/Deferred stock units	—	101	56	—
Total effects of dilutive securities	—	515	1,347	—
Shares used in dilutive earnings per share calculation:	15,977	16,250	17,250	15,718

The following shares were not included in the computation of diluted earnings per share because the exercise price exceeded the value of the shares, or we reported a net loss, and the effect would have been anti-dilutive (in thousands):

	Three Months Ended September 30,		Nine Months Ended September 30,
	2017	2016	2017	2016
Anti-dilutive securities:
Stock options	2,326	84	34	2,537
Restricted stock/Deferred stock units	46	—	1	149
Total anti-dilutive securities	2,372	84	35	2,686