NET INCOME (LOSS) PER SHARE

9 Months Ended

Sep. 29, 2023

Basic earnings per share is computed by dividing net income (loss) for the period by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is calculated by dividing net income (loss) by the weighted-average number of common shares and potentially dilutive securities outstanding during the period using the treasury stock method for the Company’s stock options, restricted stock units, and shares issuable under the ESPP, and the if-converted method for the 2024 Notes.

As noted in Note 6, “Convertible Debt,” the principal amount of the 2024 Notes will be settled in cash. Therefore, for the purpose of calculating diluted net income (loss) per share, it will be assumed that the conversion spread value will be settled in shares.

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


	Three Months Ended				Nine Months Ended
(in thousands, except per share amounts)	September 29, 2023		September 30, 2022		September 29, 2023		September 30, 2022
Numerator:
Net income (loss)	$	(6,495)	$	8,740	$	153	$	22,051
Denominator:
Weighted average number of shares outstanding:
Basic	112,031		105,228		111,431		104,617
2022 Notes	—		3,078		—		2,718
2024 Notes	—		2,678		4,919		1,569
Stock options	—		218		—		238
Restricted stock units	—		1,920		1,515		1,725
Stock purchase rights under the ESPP	—		63		45		44
Diluted	112,031		113,185		117,910		110,911
Net income (loss) per share:
Basic	$	(0.06)	$	0.08	$	—	$	0.21
Diluted	$	(0.06)	$	0.08	$	—	$	0.20

The following table sets forth the potential dilutive shares that were excluded from the computation of diluted net income (loss) per share, because their effects were anti-dilutive:


	Three Months Ended		Nine Months Ended
(in thousands)	September 29, 2023	September 30, 2022	September 29, 2023	September 30, 2022

2024 Notes	3,650	—	—	—

Restricted stock units	3,465	22	198	43
Stock purchase rights under the ESPP	425	—	—	—
Total	7,540	22	198	43