Net Income per Share

9 Months Ended

Sep. 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 September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Net income	$	9,779	$	6,305	$	25,333	$	17,083
Basic:
Weighted-average shares of common stock outstanding	31,246		32,648		31,321		32,724
Shares used in computing basic net income per share	31,246		32,648		31,321		32,724
Effect of dilutive securities:
Restricted stock subject to vesting	694		733		637		665
Shares issuable for acquisition consideration (1)	219		264		239		457
Shares used in computing diluted net income per share	32,159		33,645		32,197		33,846

Basic net income per share	$	0.31	$	0.19	$	0.81	$	0.52
Diluted net income per share	$	0.30	$	0.19	$	0.79	$	0.50

(1)

For the three and nine months ended September 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 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; (iii) the Asset Purchase Agreement with RAS; (iv) the Asset Purchase Agreement with Clarity Consulting, Inc. and Truth Labs, LLC; (v) the Asset Purchase Agreement with Southport; and (vi) the Asset Purchase Agreement with Stone Temple, 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,
	2019	2018	2019	2018
Restricted stock subject to vesting	—	—	35	40
Convertible senior notes	3,823	3,823	3,823	3,823
Warrants related to the issuance of convertible senior notes	3,823	3,823	3,823	3,823
Total anti-dilutive securities	7,646	7,646	7,681	7,686

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 2019, the Company’s Board of Directors authorized the repurchase of up to $235.0 million of Company common stock through a stock repurchase program. Subsequent to quarter end, the Board of Directors authorized the expansion of the Company’s stock repurchase program by authorizing the repurchase of up to an additional $30.0 million of the Company’s common stock for a total repurchase program of $265.0 million, and extended the expiration date of the program from December 31, 2019 to June 30, 2021. 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 $219.2 million (15.4 million shares) of outstanding common stock through September 30, 2019.