Basic earnings per share is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period plus the dilutive effect of outstanding stock options and restricted stock-based awards using the treasury stock method.

The calculation of the basic and diluted income (loss) per share of common stock is as follows (in thousands, except per share value):

	Three Months Ended
	May 31,
	2019			2018
Net income (loss)	$	(8,693	)	$	8,511
Basic weighted average number of common shares outstanding		33,381			35,458
Effect of stock options and restricted stock units computed on treasury stock method		—			995
Diluted weighted average number of common shares outstanding		33,381			36,453
Earnings (loss) per share:
Basic	$	(0.26	)	$	0.24
Diluted	$	(0.26	)	$	0.23

All outstanding options and restricted stock units for the three months ended May 31, 2019 were excluded from the computation of diluted earnings per share because we reported a net loss for this quarter and the effect of inclusion would be antidilutive.

We have the option to pay cash, issue shares of common stock or any combination thereof for the aggregate amount due upon conversion of the Notes. It is our intent to settle the principal amount of the convertible senior notes with cash, and therefore, we use the treasury stock method for calculating any potential dilutive effect of the conversion option on diluted earnings (loss) per share. From the time of the issuance of the Notes, the average market price of our common stock has been less than the initial conversion price of the Notes, and consequently no shares have been included in diluted earnings per share for the conversion value of the Notes.