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Net Income (loss) Per Share
 9 Months Ended
Sep. 30, 2014
Net Income (loss) Per Share [Abstract]  
Net Income (loss) Per Share
Note 9. Net Income (loss) Per Share

Basic net income (loss) per share is computed using the weighted-average number of common shares outstanding during the periods less shares of common stock subject to repurchase and non-vested stock awards. Diluted net income (loss) per share is computed using the weighted-average number of common shares outstanding and potentially dilutive common shares outstanding during the periods. The dilutive effect of outstanding stock options and restricted stock awards is reflected in diluted earnings per share by application of the treasury stock method. Potentially dilutive common shares consist of common shares issuable upon the exercise of stock options. Potentially dilutive common shares are excluded in net loss periods, as their effect would be anti-dilutive.
 
A reconciliation of the numerators and denominators of the basic and diluted net income (loss) per share calculations is as follows (in thousands, except per share data):

  
Three Months Ended
  
Nine Months Ended
 
  
September 30,
  
September 30,
 
  
2014
  
2013
  
2014
  
2013
 
Numerator:
        
Net income (loss) attributable to AXT, Inc.
 
$
644
  
$
(2,295
)
 
$
(1,077
)
 
$
(6,730
)
Less: Preferred stock dividends
  
(44
)
  
(44
)
  
(132
)
  
(132
)
                 
Net income (loss) available to common stockholders
 
$
600
  
$
(2,339
)
 
$
(1,209
)
 
$
(6,862
)
Denominator:
                
Weighted average common shares (basic)
  
32,504
   
32,366
   
32,416
   
32,407
 
Effect of dilutive securities:
                
Common stock options
  
201
   
—
   
—
   
—
 
Restricted stock awards
  
33
   
—
   
—
   
—
 
Weighted average common shares (dilutive)
  
32,738
   
32,366
   
32,416
   
32,407
 
Net income (loss) attributable to AXT, Inc. per common share:
                
Basic
 
$
0.02
  
$
(0.07
)
 
$
(0.04
)
 
$
(0.21
)
Diluted
 
$
0.02
  
$
(0.07
)
 
$
(0.04
)
 
$
(0.21
)
Options excluded from diluted net income (loss)  per share as the impact is anti-dilutive
  
2,000
   
2,524
   
2,684
   
2,563
 
Restricted stock excluded from diluted net income (loss) per share as the impact is anti-dilutive
  
77
   
243
   
250
   
242
 

The 883,000 shares of $0.001 par value Series A preferred stock issued and outstanding as of September 30, 2014 and December 31, 2013, valued at $3,532,000, are non-voting and non-convertible preferred stock with a 5.0% cumulative annual dividend rate payable when declared by the board of directors and a $4 per share liquidation preference over common stock, which must be paid before any distribution is made to common stockholders. These preferred shares were issued to Lyte Optronics, Inc. stockholders in connection with the completion of our acquisition of Lyte Optronics, Inc. on May 28, 1999.