8. Net Income (Loss) 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 (loss) per share (in thousands, except per share data):

	Three Months Ended				Six Months Ended
	June 30,		June 24,		June 30,		June 24,
	2017		2016		2017		2016
Numerator:
Net income (loss)	$	20,179	$	723	$	34,520	$	(2,516	)
Denominator:
Shares used in computation — basic:
Weighted average common shares outstanding		33,433		32,565		33,247		32,437
Shares used in computation — diluted:
Shares used in computing basic net income (loss) per share		33,433		32,565		33,247		32,437
Dilutive effect of common shares outstanding subject to repurchase		622		184		749		—
Dilutive effect of options outstanding		9		43		21		—
Weighted average shares used in computing diluted net income (loss) per share		34,064		32,792		34,017		32,437
Net income (loss) per share — basic	$	0.60	$	0.02	$	1.04	$	(0.08	)
Net income (loss) per share — diluted	$	0.59	$	0.02	$	1.01	$	(0.08	)

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 none for the three and six month periods ended June 30, 2017. 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.