NET INCOME (LOSS) PER SHARE

3 Months Ended

Mar. 29, 2024

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 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 7, “Convertible Debt,” the principal amount of the 2024 Notes was required to be settled in cash. Therefore, for the purpose of calculating diluted net income (loss) per share, it is 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
(in thousands, except per share amounts)	March 29, 2024		March 31, 2023
Numerator:
Net income (loss)	$	(8,089)	$	5,093
Denominator:
Weighted average number of shares outstanding:
Basic	112,350		110,794

2024 Notes	—		4,964

Restricted stock units	—		2,000

Diluted	112,350		117,758
Net income (loss) per share:
Basic	$	(0.07)	$	0.05
Diluted	$	(0.07)	$	0.04

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
(in thousands)	March 29, 2024	March 31, 2023

2024 Notes	4,287	—

Restricted stock units	3,197	72
Stock purchase rights under the ESPP	316	300
Total	7,800	372