Net Income per Share

The following table presents the calculation of basic and diluted net income per share (in thousands, except per share information):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Net income	$	6,305	$	7,027	$	17,083	$	12,146
Basic:
Weighted-average shares of common stock outstanding	32,648		32,673		32,724		32,997
Shares used in computing basic net income per share	32,648		32,673		32,724		32,997
Effect of dilutive securities:
Restricted stock subject to vesting	733		459		665		450
Shares issuable for acquisition consideration (1)	264		859		457		638
Shares used in computing diluted net income per share	33,645		33,991		33,846		34,085

Basic net income per share	$	0.19	$	0.22	$	0.52	$	0.37
Diluted net income per share	$	0.19	$	0.21	$	0.50	$	0.36

(1)

For the three and nine months ended September 30, 2018, this represents the shares held in escrow pursuant to: (i) the Asset Purchase Agreement with BioPharm Systems, Inc. (“BioPharm”); (ii) the Asset Purchase Agreement with Zeon Solutions Incorporated and certain related entities (collectively, “Zeon”); (iii) the Asset Purchase Agreement with RAS & Associates, LLC (“RAS”); (iv) the Asset Purchase Agreement with Clarity Consulting, Inc. and Truth Labs, LLC (together, “Clarity”); (v) the Asset Purchase Agreement with Southport Services Group, LLC (“Southport”); and (vi) the Asset Purchase Agreement with Stone Temple Consulting Corporation (“Stone Temple”), as part of the consideration. For the three and nine months ended September 30, 2017, this represents the shares held in escrow pursuant to: (i) the Asset Purchase Agreement with BioPharm; (ii) the Asset Purchase Agreement with Zeon; (iii) the Asset Purchase Agreement with The Pup Group, Inc. d/b/a Enlighten (“Enlighten”); (iv) the Asset Purchase Agreement with RAS; and (v) the Asset Purchase Agreement with Clarity, as part of the consideration.

The number of anti-dilutive securities not included in the calculation of diluted net income per share were as follows (in thousands):



	Three Months Ended September 30,		Nine Months Ended September 30,
	2018	2017	2018	2017
Restricted stock subject to vesting	—	—	40	117
Convertible senior notes	3,823	—	3,823	—
Warrants related to the issuance of convertible senior notes	3,823	—	3,823	—
Total anti-dilutive securities	7,646	—	7,686	117

See Note 10, Long-term Debt for further information on the convertible senior notes and warrants related to the issuance of convertible notes.

Prior to 2018, the Company's Board of Directors authorized the repurchase of up to $135.0 million of Company common stock. On February 20, 2018, the Board of Directors authorized the expansion of the stock repurchase program by authorizing the repurchase of up to an additional $25.0 million of Company common stock and extended the expiration date of the program from December 31, 2018 to December 31, 2019. On August 15, 2018, the Board of Directors authorized an additional $75.0 million, for a total repurchase program of $235.0 million. The program could be suspended or discontinued at any time, based on market, economic, or business conditions. The timing and amount of repurchase transactions will be determined by management based on its evaluation of market conditions, share price, and other factors. Since the program’s inception on August 11, 2008, the Company has repurchased approximately $186.8 million (14.2 million shares) of outstanding common stock through September 30, 2018.