Net Income Per Common Share

9 Months Ended

Sep. 29, 2023

2. Net Income per Common Share

Basic net income per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period. With regard to common stock subject to vesting requirements and restricted stock units issued to the Company’s employees and non-employee members of its Board of Directors, the calculation includes only the vested portion of such stock and units.

Diluted net income per common share is computed by dividing net income by the weighted average number of common shares outstanding, increased by the assumed conversion of other potentially dilutive securities during the period.

2. Net Income per Common Share (continued)

The following table reconciles basic and dilutive weighted average common shares:


	Quarter Ended				Nine Months Ended
	September 29,		September 30,		September 29,		September 30,
	2023		2022		2023		2022

Basic weighted average common shares outstanding		27,220,176		31,685,621		27,146,095		31,595,814
Effect of dilutive securities:
Unvested restricted stock units and common stock subject to vesting requirements issued to employees and non-employees		597,773		622,893		398,643		519,964
Common stock issuable upon the exercise of stock options and SARs		—		—		—		8,593
Dilutive weighted average common shares outstanding		27,817,949		32,308,514		27,544,738		32,124,371

Approximately 102 shares and 2 thousand shares of common stock equivalents were excluded from the computations of diluted net income per common share for the quarter and nine months ended September 29, 2023, respectively, as compared to 3 thousand shares and 2 thousand shares for the quarter and nine months ended September 30, 2022, respectively, as inclusion would have had an anti-dilutive effect on diluted net income per common share.