Earnings (Loss) Per Share

6 Months Ended

Jun. 30, 2015

(10) Earnings Per Share

Basic earnings (loss) per share (“EPS”) is computed by dividing the net income (loss) by the weighted-average number of shares of common stock outstanding during the period. Diluted EPS is computed using the weighted-average number of shares of common stock outstanding during the period and, when dilutive, potential common shares outstanding during the period. Potential common shares consist of incremental shares issuable upon the assumed exercise of stock options, preferred stock, unvested RSUs and PSUs, and contingent consideration related to the BlueKite Acquisition. The estimated shares of PSUs are excluded in the diluted EPS calculation as the performance conditions were not met by the end of this period.

The following table presents the calculation of earnings (loss) per share (in thousands, except per share data):


		Three months ended June 30,				Six months ended June 30,
		2015		2014		2015		2014
	(unaudited)
Basic earnings (loss) per share:
Numerator:
Net income (loss)		$	(2,336)	$	1,398	$	(3,599)	$	1,750
Denominator:
Weighted-average common shares			39,183		38,102		38,994		37,952
Basic earnings (loss) per share		$	(0.06)	$	0.04	$	(0.09)	$	0.05

Diluted earnings per share:
Numerator:
Net income (loss)		$	(2,336)	$	1,398	$	(3,599)	$	1,750
Denominator:
Weighted-average common shares			39,183		38,102		38,994		37,952
Weighted-average dilutive stock options and RSUs			—		3,432		—		3,632
Contingent stock due to BlueKite Acquisition			—		88		—		83
Weighted-average common shares and equivalents			39,183		41,622		38,994		41,667
Diluted earnings (loss) per share		$	(0.06)	$	0.03	$	(0.09)	$	0.04

The following securities have been excluded from the calculation of diluted earnings (loss) per share of common stock for the periods presented because their effect would have been anti-dilutive (in thousands):


	Three months ended June 30,				Six months ended June 30,
	2015		2014		2015		2014
	(unaudited)
Stock options outstanding		5,932		1,947		6,060		1,911
Unvested RSUs		899		32		753		35
Contingent stock due to BlueKite Acquisition		44		—		44		—
Total common stock equivalents	6,875		1,979		6,857		1,946