NET 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 27, 2019		September 28, 2018			September 27, 2019			September 28, 2018
Numerator:
Net income (loss)	$	11,657	$	(7,758	)	$	(11,494	)	$	(24,365	)
Denominator:
Weighted average number of common shares outstanding
Basic	89,964		86,321			89,030			85,188
Effect of dilutive securities from stock options, restricted stock units and ESPP	1,855		—			—			—
Effect of dilutive securities from convertible debt	3,468		—			—			—
Effect of dilutive securities from warrant	2,309		—			—			—
Diluted shares	97,596		86,321			89,030			85,188
Net income (loss) per share:
Basic	$	0.13	$	(0.09	)	$	(0.13	)	$	(0.29	)
Diluted	$	0.12	$	(0.09	)	$	(0.13	)	$	(0.29	)

Basic net loss per share was the same as diluted net loss per share for the three months ended September 28, 2018 and nine months ended September 27, 2019 and September 28, 2018, as the inclusion of potential common shares outstanding would have been anti-dilutive due to the Company’s net losses for the periods presented. The following table sets forth the potential weighted common shares outstanding and the anti-dilutive weighted shares that were excluded from the computation of basic and diluted net income (loss) per share calculations (in thousands):



	Three months ended		Nine months ended
	September 27, 2019	September 28, 2018	September 27, 2019	September 28, 2018
Stock options	678	3,219	2,699	3,386
RSUs	8	3,266	2,860	2,933
Stock purchase rights under the ESPP	—	529	475	635
Convertible Debt	—	—	1,156	—
Warrants ⁽¹⁾	—	1,555	4,128	1,039
Total	686	8,569	11,318	7,993

(1) See Note 15, “Warrants” for additional information.

The Company’s intent is to settle the principal amount of the 2020 Notes and the 2024 Notes in cash. The treasury stock method is used to calculate any potential dilutive effect of the conversion spread on diluted net income per share, if applicable.


•	The conversion spread of 7,962,609 shares 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 for the 2020 Notes.


•	The conversion spread of 13,337,182 shares 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 $8.66 per share for the 2024 Notes.

See Note 11, “Convertible Notes, Other Debts and Finance Leases” for additional information on the 2020 Notes and the 2024 Notes.