Basic And Diluted Net Income Per Share

9 Months Ended

Oct. 01, 2016

Basic and Diluted Net Income (Loss) Per Share

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



	Three Months Ended					Nine Months Ended
(In thousands, except per share amounts)	October 1, 2016		October 3, 2015			October 1, 2016		October 3, 2015
Numerator:
Net income (loss)	$	5,457	$	(6,099	)	$	6,913	$	(6,247	)
Denominator:
Basic weighted-average shares outstanding	27,108		27,248			27,005		27,661
Effect of dilutive employee stock options and restricted stock units	272		—			278		—
Diluted weighted-average shares outstanding	27,380		27,248			27,283		27,661

Net income (loss) per share - basic	$	0.20	$	(0.22	)	$	0.26	$	(0.23	)

Net income (loss) per share - diluted	$	0.20	$	(0.22	)	$	0.25	$	(0.23	)

The dilutive effect of outstanding options and restricted stock units is reflected in diluted net income per share, but not diluted net loss per share, by application of the treasury stock method, which includes consideration of stock-based compensation required by U.S. GAAP.

For the three and nine month periods ended October 1, 2016, diluted earnings per share includes the effect of dilutive employee stock options and restricted stock units. No effect of dilutive employee stock options and restricted stock units were included for the three and nine month periods ended October 3, 2015.

For the three and nine month periods ended October 1, 2016, a total of 1.8 million and 2.3 million shares of common stock, subject to outstanding options and restricted stock units, respectively, were excluded from the computation of diluted net income per share as the resulting effect would have been anti-dilutive, as compared to a total of 3.2 million and 3.1 million shares of common stock subject to outstanding options and restricted stock units, which were excluded from the computation of diluted net income (loss) per share for the three and nine month periods ended October 3, 2015, respectively.