Net Income per Share (Tables)

9 Months Ended

Sep. 30, 2018

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.

Antidilutive Securities Excluded from Computation of Earnings Per Share

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