Earnings (Loss) Per Share

9 Months Ended

Sep. 29, 2020

Basic earnings (loss) per share (“EPS”) is calculated by dividing net income (loss) available to common stockholders by the weighted-average number of shares of common stock outstanding during each period. Diluted EPS is calculated using net income (loss) available to common stockholders divided by diluted weighted-average shares of common stock outstanding during each period. Potentially dilutive securities include shares of common stock underlying stock options, warrants and RSUs. Diluted EPS considers the impact of potentially dilutive securities except in periods in which there is a loss because the inclusion of the potential common shares would have an anti-dilutive effect.

The following table sets forth the computations of basic and diluted EPS (in thousands, except share and per share data):


	Fiscal Quarter Ended				Three Fiscal Quarters Ended
	September 29, 2020		October 1, 2019		September 29, 2020		October 1, 2019
Net (loss) income	$	(127)	$	4,243	$	(19,440)	$	2,830
Shares:
Basic weighted average shares outstanding	44,358,763		43,990,049		44,238,400		44,007,345
Effect of dilutive securities	—		909,127		—		1,071,194
Diluted weighted average shares outstanding	44,358,763		44,899,176		44,238,400		45,078,539
(Loss) earnings per share:
Basic (loss) earnings per share	$	—	$	0.10	$	(0.44)	$	0.06
Diluted (loss) earnings per share	$	—	$	0.09	$	(0.44)	$	0.06

The Company computes the effect of dilutive securities using the treasury stock method and average market prices during the period. Potential common shares are excluded from the computation of diluted earnings per share when the effect would be anti-dilutive. The shares issuable on the vesting or exercise of share-based awards or exercise of outstanding warrants that were excluded from the calculation of diluted earnings (loss) per share because the effect of their inclusion would have been anti-dilutive totaled 3,107,448 and 1,748,444 for the third quarters of 2020 and 2019, respectively, and totaled 3,251,799 and 1,490,202 for the first three quarters of 2020 and 2019, respectively.