5. Earnings per Share

Basic earnings per common share is computed by dividing net income by the weighted average number of common shares outstanding during the period. For diluted earnings per common share, the denominator also includes the dilutive effect of outstanding restricted stock units determined using the treasury stock method. For periods in which net losses are generated, the dilutive potential common shares are excluded from the calculation of diluted earnings per share as the effect would be anti-dilutive. Dilutive effects of contingently issuable shares are included in the weighted average dilutive share calculation when the contingencies have been resolved.

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


	Three Months Ended
	March 28, 2014			March 29, 2013
Numerators:
Consolidated net income	$	2,856		$	1,749
Less: income attributable to noncontrolling interest		(7	)		(36	)

Income from continuing operations		2,849			1,713
Income (loss) from discontinued operations		(1,866	)		369

Net income attributable to GSI Group Inc.	$	983		$	2,082


Denominators:
Weighted average common shares outstanding—basic		34,227			33,983
Dilutive potential common shares		442			288

Weighted average common shares outstanding—diluted		34,669			34,271

Antidilutive common shares excluded from above		87			373

Basic Earnings (Loss) per Common Share:
From continuing operations	$	0.08		$	0.05
From discontinued operations	$	(0.05	)	$	0.01
Basic earnings (loss) per share attributable to GSI Group Inc.	$	0.03		$	0.06

Diluted Earnings (Loss) per Common Share:
From continuing operations	$	0.08		$	0.05
From discontinued operations	$	(0.05	)	$	0.01
Diluted earnings (loss) per share attributable to GSI Group Inc.	$	0.03		$	0.06

Common Stock Repurchases

In October 2013, the Company’s Board of Directors authorized a share repurchase plan under which the Company may repurchase outstanding shares of the Company’s common stock up to an aggregate amount of $10.0 million. The shares may be repurchased from time to time, at the Company’s discretion, based on ongoing assessment of the capital needs of the business, the market price of the Company’s common stock, and general market conditions. Shares may also be repurchased through an accelerated stock purchase agreement, on the open market or in privately negotiated transactions in accordance with applicable federal securities laws. Repurchases may be made under certain SEC regulations, which would permit common stock to be purchased when the Company would otherwise be prohibited from doing so under insider trading laws. The share repurchase plan does not obligate the Company to acquire any particular amount of common stock. No time limit was set for the completion of the share repurchase program, and the program may be suspended or discontinued at any time. As of December 31, 2013, the Company has cumulatively repurchased 50 thousand shares of its common stock in the open market for a weighted average share price of $10.49 per share. There were no share repurchases during the three months ended March 28, 2014.