Net Income per Share

6 Months Ended

Jun. 30, 2019

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



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Net income	$	8,528	$	5,849	$	15,554	$	10,778
Basic:
Weighted-average shares of common stock outstanding	31,343		32,772		31,359		32,762
Shares used in computing basic net income per share	31,343		32,772		31,359		32,762
Effect of dilutive securities:
Restricted stock subject to vesting	495		552		558		576
Shares issuable for acquisition consideration (1)	202		565		249		556
Shares used in computing diluted net income per share	32,040		33,889		32,166		33,894

Basic net income per share	$	0.27	$	0.18	$	0.50	$	0.33
Diluted net income per share	$	0.27	$	0.17	$	0.48	$	0.32

(1)

For the three and six months ended June 30, 2019, this represents the shares held in escrow pursuant to: (i) the Asset Purchase Agreement with Zeon Solutions Incorporated and certain related entities (collectively, “Zeon”); (ii) the Asset Purchase Agreement with RAS & Associates, LLC (“RAS”); (iii) the Asset Purchase Agreement with Southport Services Group, LLC (“Southport”); (iv) the Asset Purchase Agreement with Stone Temple Consulting Corporation (“Stone Temple”); (v) the Agreement and Plan of Merger with Elixiter, Inc. (“Elixiter”); and (vi) the Asset Purchase Agreement with Sundog Interactive, Inc. (“Sundog”), as part of the consideration. For the three and six months ended June 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; (iii) the Asset Purchase Agreement with RAS; (iv) the Asset Purchase Agreement with Clarity Consulting, Inc. and Truth Labs, LLC (together, “Clarity”); and (v) the Asset Purchase Agreement with Southport, 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 June 30,		Six Months Ended June 30,
	2019	2018	2019	2018
Restricted stock subject to vesting	—	—	52	60
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	—	7,698	60

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

The Company’s Board of Directors has authorized the repurchase of up to $235.0 million of Company common stock through a stock repurchase program with an expiration date of December 31, 2019. 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 $215.7 million (15.3 million shares) of outstanding common stock through June 30, 2019.