Net Income (Loss) Per Share

3 Months Ended

Jun. 30, 2015

Net Income (Loss) Per Share

Note 2. Net Income (Loss) Per Share

Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by dividing net income (loss) by the weighted average number of dilutive common shares outstanding during the period. Diluted shares outstanding are 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. In periods when a net loss is reported, all common stock equivalents are excluded from the calculation because they would have an anti-dilutive effect, meaning the loss per share would be reduced. Therefore, in periods when a loss is reported, basic and dilutive loss per share are the same. The Company’s basic and diluted net income (loss) per share for the three months ended June 30, 2015 and 2014 were as follows (in thousands, except per share data):

	Three Months Ended June 30,
	2015		2014
Basic Net Income (Loss) Per Share
Net income (loss)	$	8,859	$	(1,709	)
Weighted average shares used in computing basic net income (loss) per share		41,696		40,062
Net income (loss) per share - basic	$	0.21	$	(0.04	)
	Three Months Ended June 30,
	2015		2014
Diluted Net Income (Loss) Per Share
Net income (loss)	$	8,859	$	(1,709	)
Weighted average shares used in computing basic net income (loss) per share		41,696		40,062
Effect of dilutive securities		2,714		—
Weighted average shares used in computing diluted net income (loss) per share		44,410		40,062
Net income (loss) per share - diluted	$	0.20	$	(0.04	)

For the three months ended June 30, 2015, approximately 2,000 shares underlying out-of-the-money stock options were not included in the computation of diluted earnings per share because their effect would have been anti-dilutive. Also, approximately 234,000 restricted shares in three months ended June 30, 2015 related to performance-based awards for which milestones have not been met, were not included in the computation of diluted earnings per share.

For the three months ended June 30, 2014, approximately 3,678,000 shares underlying stock options and approximately 1,242,000 restricted shares and restricted stock units were excluded from the calculation of diluted weighted average shares outstanding because the Company incurred a loss in the period and to include them would have been anti-dilutive.