NOTE 6: NET INCOME PER SHARE OF COMMON STOCK

Basic net income per share is computed based on the weighted average number of shares of common stock outstanding during each period. Diluted net income per share is computed based on the weighted average number of shares of common stock outstanding during each period, plus dilutive potential shares of common stock considered outstanding during the period, in accordance with FASB ASC No. 260, “Earnings Per Share.”


	Nine months ended September 30,				Three months ended September 30,
	2017		2016		2017		2016
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Numerator:
Net income	$	13,865	$	7,899	$	5,850	$	3,388

Denominator (in thousands):
Basic weighted-average common stock outstanding		21,687		20,718		21,946		21,025
Effect of stock -based awards		793		677		737		858

Diluted weighted average common stock outstanding		22,480		21,395		22,683		21,883

Basic net income per share	$	0.64	$	0.38	$	0.27	$	0.16

Diluted net income per share	$	0.62	$	0.37	$	0.26	$	0.15

The weighted average number of shares related to outstanding equity-based awards excluded from the calculation of diluted net income per share, since their effect was anti-dilutive, was 0 and 39,856 shares for the three and nine months ended September 30, 2017, respectively, and 92,103 and 349,428 for the corresponding periods of 2016.