Income (Loss) Per Share

9 Months Ended

Sep. 30, 2016

INCOME (LOSS) PER SHARE

The following table sets forth the computation of the basic and diluted net loss per share (in thousands, except per share amounts):



	Three months ended						Nine months ended
	September 30, 2016			October 2, 2015			September 30, 2016			October 2, 2015
Numerator:
Net loss	$	(16,012	)	$	(4,811	)	$	(61,871	)	$	(8,462	)
Denominator:
Weighted average number of common shares outstanding
Basic and diluted	78,092			87,991			77,475			88,359
Net loss per share:
Basic and diluted	$	(0.21	)	$	(0.05	)	$	(0.80	)	$	(0.10	)

The diluted net loss per share is the same as basic net loss per share for the three and nine months ended September 30, 2016 and October 2, 2015 because potential common shares are only considered when their effect would be dilutive. The following table sets forth the potential weighted common shares outstanding that were excluded from the computation of basic and diluted net loss per share calculations (in thousands):



	Three months ended		Nine months ended
	September 30, 2016	October 2, 2015	September 30, 2016	October 2, 2015
Stock options	5,193	6,095	5,389	6,674
RSUs	2,800	2,198	2,273	2,237
Stock purchase rights under the ESPP	1,212	524	641	492
Warrants ⁽¹⁾	43	—	14	—
Total	9,248	8,817	8,317	9,403

(1) On September 26, 2016, in connection with the execution of a product supply agreement pursuant to which an affiliate of Comcast Corporation (together with Comcast Corporation, “Comcast”) may, in its sole discretion, purchase from the Company licenses to certain of the Company’s software products, the Company granted Comcast a warrant to purchase shares of its common stock. (See Note 15, “Warrants” for additional information on the Comcast warrants).

Also excluded from the table above are the Notes, which are convertible under certain conditions into an aggregate of 22,304,348 shares of common stock. (See Note 11, “Convertible Notes, Other Debts and Capital Leases” for additional information on the Notes). Since the Company’s intent is to settle the principal amount of the Notes in cash, the treasury stock method is being used to calculate any potential dilutive effect of the conversion spread on diluted net income per share, if applicable. The conversion spread will have a dilutive impact on diluted net income per share when the Company’s average market price of its common stock for a given period exceeds the conversion price of $5.75 per share.