Net Income (Loss) Per Share

3 Months Ended

Mar. 31, 2017

7. Net Income (Loss) Per Share

Basic and diluted net income (loss) per share is computed by dividing the net income (loss) by the weighted-average number of common shares outstanding during the period. The potential dilutive shares of our common stock resulting from the assumed exercise of outstanding stock options were determined under the treasury stock method. The computation of net income (loss) per share for each period, including the number of weighted-average shares outstanding, is shown on the face of the statements of comprehensive income (loss).

The following table shows the computation of net income (loss) per share for each period, including the weighted-average number of shares outstanding.

	Three Months Ended
	March 31,
	2017		2016
	(in thousands)
Numerator:
Net income (loss)	$	4,388	$	(19	)
Denominator:
Weighted-average shares used to compute basic net income (loss) per share		112,867		109,661
Dilutive effect of employee stock options		8,322		—
Weighted-average shares used to compute diluted net income (loss) per share		121,189		109,661
Net income (loss) per share attributable to common stockholders
Basic and diluted	$	0.04	$	(0.00	)

On a weighted-average basis, there were 3.8 million stock options outstanding during the three-months ended March 31, 2017 that were excluded from the computation of diluted net income per share because including them would have reduced dilution. For the three-months ended March 31, 2016, we excluded all shares of common stock underlying outstanding options from the calculation of diluted net loss per share because including them would have reduced dilution.

The following table presents information on securities outstanding as of the end of each period that could potentially dilute the per share data in the future.

	March 31,
	2017		2016
	(in thousands)
Stock options outstanding		20,880		18,839