Net Income Per Share Attributable to DASAN Zhone Solutions, Inc.

9 Months Ended

Sep. 30, 2019

Net Income Per Share Attributable to DASAN Zhone Solutions, Inc.

(13)	Net Income Per Share Attributable to DASAN Zhone Solutions, Inc.

Basic net income per share attributable to DASAN Zhone Solutions, Inc. is computed by dividing the net income attributable to DASAN Zhone Solutions, Inc. for the period by the weighted average number of shares of common stock outstanding during the period. The calculation of diluted net income per share attributable to DASAN Zhone Solutions, Inc. gives effect to common stock equivalents; however, potential common stock equivalents are excluded if their effect is antidilutive. Potential common stock equivalents are composed of incremental shares of common stock issuable upon the exercise of stock options and the vesting of restricted stock units. In periods when a net loss is reported, all common stock equivalents are excluded from the calculation because they would have an anti-dilutive effect, meaning the loss per share would be reduced. Therefore, in periods when a loss is reported, basic and dilutive loss per share are the same.

The following table is a reconciliation of the numerator and denominator in the basic and diluted net income (loss) per share calculation (in thousands, except per share data) for the three and nine months ended September 30, 2019 and September 30, 2018:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2019			2018		2019			2018
Net income (loss) attributable to DASAN Zhone Solutions, Inc.	$	(4,033	)	$	1,798	$	(3,263	)	$	3,321
Weighted average number of shares outstanding:
Basic		21,384			16,683		18,732			16,425
Effect of dilutive securities:
Stock options, restricted stock units and share awards		—			208		—			215
Diluted		21,384			16,891		18,732			16,640
Net income (loss) per share attributable to DASAN Zhone Solutions, Inc.:
Basic	$	(0.19	)	$	0.11	$	(0.17	)	$	0.20
Diluted	$	(0.19	)	$	0.11	$	(0.17	)	$	0.20