Earnings (Loss) Per Share

6 Months Ended

Jun. 29, 2019

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
	June 29,		June 30,		June 29,		June 30,
	2019		2018		2019		2018
Net income (loss)	$	(16,029)	$	14,280	$	(10,631)	$	40,685
Shares used in computing basic earnings (loss) per share		43,386		43,312		43,287		43,138
Effect of dilutive securities:
Stock-based awards and convertible debt		—		982		—		968
Shares used in computing diluted earnings (loss) per share		43,386		44,294		43,287		44,106
Earnings (loss) per share:
Basic	$	(0.37)	$	0.33	$	(0.25)	$	0.94
Diluted	$	(0.37)	$	0.32	$	(0.25)	$	0.92

Diluted shares used in calculating net loss per share for the three and six months ended June 29, 2019 excluded 0.6 million shares 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 (loss) 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 (loss) per share using the treasury stock method. Due to the net loss in the three and six months ended June 29, 2019, approximately 0.2 million shares and 0.1 million shares, respectively, were not included in the denominator for the calculation of diluted earnings (loss) per share. For the three and six months ended June 30, 2018, approximately 0.3 million shares and 0.2 million shares, respectively, were included in the denominator for the calculation of diluted earnings (loss) per share. See Note 7, Debt, to the Condensed Consolidated Financial Statements for additional information.