Net Income Per Share

3 Months Ended

Jun. 30, 2022

Note 4. Net Income (Loss) Per Share

Basic net income (loss) per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed using the treasury stock method by dividing net income by the weighted average number of dilutive common shares outstanding during the period. Diluted shares outstanding is calculated by adding to the weighted average shares outstanding any potential dilutive securities outstanding for the period. Potential dilutive securities include stock options, restricted stock units, performance-based stock awards and shares to be purchased under the Company’s employee stock purchase plan.

For purposes of the diluted net income (loss) per share calculation, potential dilutive securities are excluded from the calculation if their effect would be anti-dilutive. As such, basic and diluted net loss per share are the same for periods with a net loss.

The Company’s basic and diluted net income (loss) per share were as follows:


	For the Three Months Ended June 30,
	2022		2021
Net income (loss) per share – basic	(in thousands, except per share data)
Net income (loss)	$	54,554	$	(26,525	)

Weighted average shares – basic		45,575		45,311

Net income (loss) per share – basic	$	1.20	$	(0.59	)


	For the Three Months Ended June 30,
	2022		2021
Net income (loss) per share – diluted	(in thousands, except per share data)
Net income (loss)	$	54,554		(26,525	)

Weighted average shares – basic		45,575		45,311
Effect of dilutive securities		347		—
Weighted average shares – diluted		45,922		45,311

Net income (loss) per share – diluted	$	1.19	$	(0.59	)

For the three months ended June 30, 2022 and 2021, approximately 0.2 million and 1.1 million shares of common stock underlying outstanding securities related to out-of-the-money stock options and performance-based awards where milestones were not met were not included in the computation of diluted earnings per share because their inclusion would be anti-dilutive or such shares are contingently issuable upon meeting performance criteria in the periods presented.