Net Income Per Share

6 Months Ended

Jun. 24, 2016

8. Net Income Per Share

Basic net income per share excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted net income per share reflects the potential dilution that would occur if outstanding securities or other contracts to issue common stock were exercised or converted into common stock.

The following is a reconciliation of the numerators and denominators used in computing basic and diluted net income per share (in thousands, except per share data):

	Three months ended				Six months ended
	June 24,		June 26,		June 24,			June 26,
	2016		2015		2016			2015
Numerator:
Net income (loss)	$	723	$	2,207	$	(2,516	)	$	3,380
Denominator:
Shares used in computation — basic:
Weighted average common shares outstanding		32,565		31,615		32,437			31,042
Shares used in computation — diluted:
Shares used in computing basic net income (loss) per share		32,565		31,615		32,437			31,042
Dilutive effect of common shares outstanding subject to repurchase		184		111		—			232
Dilutive effect of options outstanding		43		51		—			84
Weighted average shares used in computing diluted net income (loss) per share		32,792		31,777		32,437			31,358
Net income (loss) per share — basic	$	0.02	$	0.07	$	(0.08	)	$	0.11
Net income (loss) per share — diluted	$	0.02	$	0.07	$	(0.08	)	$	0.11

The Company had securities outstanding which could potentially dilute basic net income per share in the future, but the incremental shares from the assumed exercise of these securities were excluded in the computation of diluted net income per share, as their effect would have been anti-dilutive. Such outstanding securities consisted of 191,679 stock options for the three months period ended June 24, 2016 and 391,676 stock options and 387,437 stock options for the three and six month periods ended June 26, 2015, respectively. For the six months period ended June 24, 2016, all potentially dilutive securities outstanding were considered anti-dilutive, and therefore the calculation of basic and diluted net loss per share was the same.