Earnings (Loss) Per Share

6 Months Ended

Jul. 04, 2020

Earnings (Loss) Per Share

Earnings (Loss) Per Share

2. Earnings (Loss) Per Share

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

	Three Months Ended				Six Months Ended
	July 4,		June 29,		July 4,		June 29,
	2020		2019		2020		2019
Net income (loss)	$	(1,823)	$	(16,029)	$	421	$	(10,631)
Shares used in computing basic earnings (loss) per share		43,761		43,386		43,699		43,287
Effect of dilutive securities:
Stock-based awards and convertible debt		—		—		520		—
Shares used in computing diluted earnings (loss) per share		43,761		43,386		44,219		43,287
Earnings (loss) per share:
Basic	$	(0.04)	$	(0.37)	$	0.01	$	(0.25)
Diluted	$	(0.04)	$	(0.37)	$	0.01	$	(0.25)

For the three months ended July 4, 2020 and June 29, 2019 and the six months ended July 4, 2020 and June 29, 2019, approximately 0.4 million, 0.0 million, 0.3 million and 0.5 million shares, respectively, consisting of restricted stock awards (RSUs) and market stock awards (MSUs), were not included in the diluted earnings (loss) per share calculation since the shares were anti-dilutive. Further, diluted shares used in calculating net loss per share for the three months ended July 4, 2020 and the three and six months ended June 29, 2019 excluded 0.3 million shares, 0.6 million shares and 0.6 million shares, respectively, due to the Company’s net loss for the periods.

The Company intends to settle the principal amount of its convertible senior notes in cash and any excess value in shares in the event of a conversion. Accordingly, shares issuable upon conversion of the principal amount have been excluded from the calculation of diluted earnings per share. If the market value of the notes under certain prescribed conditions exceeds the conversion amount, the excess is included in the denominator for the computation of diluted earnings per share using the treasury stock method. For three and six months ended July 4, 2020, approximately 0.0 million shares and 0.2 million shares, respectively, were included in the denominator for the calculation of diluted earnings per share. See Note 7, Debt, to the Condensed Consolidated Financial Statements for additional information.