Earnings Per Share

6 Months Ended

Jun. 30, 2019

Net income (loss) per share

Earnings Per Share

Note 6.   Earnings Per Share

Basic net income (loss) per share has been computed using the weighted-average number of shares of common stock outstanding during the period. Diluted net income (loss) per share has been computed using the weighted-average number of shares of common stock and dilutive potential common shares from stock options, restricted stock units and senior convertible notes outstanding during the period. In periods with net losses, normally dilutive shares become anti-dilutive. Therefore, basic and diluted earnings per share are the same.

The following table sets forth the computation of the basic and diluted net income (loss) per share for the periods indicated (in thousands, except per share amounts):

	Three months ended June 30,				Six months ended June 30,
	2019		2018		2019		2018
Numerator:
Net income (loss)	$	(11,366)	$	8,034	$	(21,840)	$	10,154
Denominator:
Weighted average shares used to compute net income (loss) per share
Basic		19,932		19,590		19,898		19,541
Effect of dilutive options and restricted stock units		—		490		—		472
Diluted		19,932		20,080		19,898		20,012
Net income (loss) per share
Basic	$	(0.57)	$	0.41	$	(1.10)	$	0.52
Diluted	$	(0.57)	$	0.40	$	(1.10)	$	0.51

The following potentially dilutive securities were excluded from the diluted net income (loss) per share as their effect would have been antidilutive (in thousands):

	Three months ended June 30,		Six months ended June 30,
	2019	2018	2019	2018
Employee stock options	29	—	63	—
Restricted stock units	—	—	2	—
Shares for convertible senior notes	4,587	—	4,587
Total antidilutive shares	4,616	—	4,652	—