Net Income (Loss) Per Share

12 Months Ended

Dec. 31, 2016

NET LOSS PER SHARE

Basic net loss per share is computed by dividing the net loss attributable to common stockholders for the applicable period by the weighted average number of common shares outstanding during the period. Potentially dilutive shares, consisting of outstanding stock options, restricted stock units, ESPP plan awards as well as the Notes, are excluded from the net loss per share computations when their effect is anti-dilutive.

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



	December 31,
	2016			2015			2014
Numerator:
Net loss	$	(72,314	)	$	(15,661	)	$	(46,248	)
Denominator:
Weighted average number of shares outstanding:
Basic and diluted	77,705			87,514			92,508
Net loss per share:
Basic and diluted	$	(0.93	)	$	(0.18	)	$	(0.50	)

The diluted net loss per share is the same as basic net loss per share for the years ended December 31, 2016, 2015 and 2014 because potential common shares are only considered when their effect would be dilutive. The following table presents the potential weighted common shares outstanding that were excluded from the computation of basic and diluted net loss per share calculations (in thousands):



	December 31,
	2016	2015	2014
Stock options	5,295	6,460	7,115
Restricted stock units	2,536	2,178	2,066
Stock purchase rights under the ESPP	659	518	346
Warrants ⁽¹⁾	206	—	—
Total	8,696	9,156	9,527

(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 17, “Warrants” for additional information).

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 12, “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.