Net Income (Loss) Per Share

Basic net income (loss) per share is computed by dividing net income (loss) attributable to common stockholders by the weighted-average number of shares of common stock outstanding during the period. The weighted-average number of shares of common stock outstanding does not include any potentially dilutive securities or any unvested restricted shares of common stock. These unvested restricted shares, although classified as issued and outstanding at September 30, 2017 and 2016, are considered contingently returnable until the restrictions lapse and will not be included in the basic net income (loss) per share calculation until the shares are vested. Unvested shares of our restricted stock do not contain non-forfeitable rights to dividends and dividend equivalents. Unvested restricted stock units are not included in calculations of basic net income (loss) per share, as they are not considered issued and outstanding at time of grant.

Diluted net income (loss) per share is computed by giving effect to all potential shares of common stock, including stock options, preferred stock, restricted stock units, and unvested restricted stock awards, to the extent they are dilutive. For the three and nine months ended September 30, 2016, all such common stock equivalents have been excluded from diluted net loss per share as the effect to net loss per share would be anti-dilutive (decrease our net loss per share).

The following table sets forth the computation of the Company’s basic and diluted net income (loss) per share (in thousands, except per share data):



	Three Months Ended September 30,					Nine Months Ended September 30,
	2017		2016			2017		2016
Numerator:
Net income (loss)	$	7,104	$	(1,705	)	$	5,846	$	(3,021	)
Less: preferred stock dividends	3		3			9		9
Net income (loss) attributable to common stockholders	$	7,101	$	(1,708	)	$	5,837	$	(3,030	)
Denominator:
Weighted-average shares outstanding - basic	36,897		35,492			37,078		35,480
Add effect of dilutive securities:
Unvested restricted stock units	672		—			672		—
Stock options outstanding	—		—			—		—
Unvested restricted stock	249		—			249		—
Shares of common stock issuable upon conversion of preferred stock	79		—			79		—
Weighted-average shares outstanding - diluted	37,897		35,492			38,078		35,480
Basic net income (loss) per share	$	0.19	$	(0.05	)	$	0.16	$	(0.09	)
Diluted net income (loss) per share	$	0.19	$	(0.05	)	$	0.15	$	(0.09	)

The weighted-average number of shares for the three and nine months ended September 30, 2017 includes 988,000 shares of vested RSUs as discussed in Note 11. The weighted-average number of shares for the three and nine months ended September 30, 2016 includes 387,000 shares of vested RSUs.

The following table represents the potential shares that were excluded from the computation of weighted-average number of shares of common stock in computing the diluted net income (loss) per share for the periods presented because including them would have had an anti-dilutive effect (in thousands):



	Three and Nine Months Ended September 30,
	2017	2016
Unvested restricted stock units	1,715	3,208
Unvested restricted stock awards	105	363
Outstanding stock options	1,206	1,222
Shares of common stock issuable upon conversion of preferred stock, Series A-2	—	79
Warrants	550	—