EARNINGS PER SHARE

9 Months Ended

Oct. 01, 2021

The following table sets forth the computation of the basic and diluted net income (loss) per share:


	Three Months ended				Nine Months Ended
(in thousands, except per share amounts)	October 1, 2021		September 25, 2020		October 1, 2021		September 25, 2020
Numerator:
Net income (loss)	$	1,530	$	(5,381)	$	(6,603)	$	(42,736)
Denominator:
Weighted average number of shares outstanding:
Basic	102,099		97,563		101,057		96,623
Effect of dilutive securities:
Stock options, restricted stock units and ESPP	1,505		—		—		—
Convertible debt	2,817		—		—		—
Diluted	106,421		97,563		101,057		96,623
Net income (loss) per share:
Basic	$	0.01	$	(0.06)	$	(0.07)	$	(0.44)
Diluted	$	0.01	$	(0.06)	$	(0.07)	$	(0.44)

The diluted net loss per share was the same as basic net loss per share for the three and nine months ended September 25, 2020 and nine months ended October 1, 2021, as the inclusion of potential common shares outstanding would have been anti-dilutive due to the Company’s net losses for these periods. The following table sets forth the potential weighted common shares outstanding and anti-dilutive weighted shares that were excluded from the computation of basic and diluted net income (loss) per share:


	Three Months ended		Nine Months Ended
(in thousands)	October 1, 2021	September 25, 2020	October 1, 2021	September 25, 2020
Convertible debt	—	—	2,085	390
Stock options	—	1,558	926	1,637
Restricted stock units	69	3,336	3,079	3,066
Stock purchase rights under the ESPP	—	525	381	516
Total	69	5,419	6,471	5,609

The Company applies the treasury stock method to determine the potential dilutive effect of its convertible debt on net earnings per share as a result of the Company's intent and stated policy to settle the principal amount of its convertible debt in cash. Under the treasury stock method, the Company’s convertible debt is excluded from the calculation of diluted earnings per share for the periods when its conversion price exceeds the average market price for the Company's common stock. Under the if-converted method, the Company’s convertible debt has potential dilutive effect of 19.9 million shares.