Quarterly report pursuant to Section 13 or 15(d)

Net Income (Loss) Per Share

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Net Income (Loss) Per Share
 9 Months Ended
Sep. 30, 2018
Earnings Per Share [Abstract]  
Net Income (Loss) Per Share
Net Income (Loss) Per Share
Basic earnings per share, or EPS, is calculated by dividing net income (loss) by the weighted-average number of common shares outstanding for the period, without consideration for common stock equivalents. Diluted EPS is computed by dividing net income by the weighted-average number of common shares outstanding for the period and the weighted-average number of dilutive common stock equivalents outstanding for the period determined using the treasury-stock method. For purposes of this calculation, common stock options, restricted stock units and restricted stock awards are considered to be common stock equivalents and are only included in the calculation of diluted EPS when their effect is dilutive. In periods in which the Company has a net loss, dilutive common stock equivalents are excluded from the calculation of diluted EPS.
The table below presents the computation of basic and diluted EPS:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
 
(in thousands, except per share amounts)
Numerator:
 
 
 
 
 
 
 
Net income (loss)
$
(13,935
)
 
$
(9,167
)
 
$
(26,510
)
 
$
10,261

Denominator:
 
 
 
 
 
 
 
Weighted average common shares outstanding—basic
68,742

 
66,712

 
68,256

 
65,950

Dilutive common stock equivalents
—

 
—

 
—

 
3,541

Weighted average common shares outstanding—diluted
68,742

 
66,712

 
68,256

 
69,491

Net income (loss) per share:
 
 
 
 
 
 
 
Basic
$
(0.20
)
 
$
(0.14
)
 
$
(0.39
)
 
$
0.16

Diluted
$
(0.20
)
 
$
(0.14
)
 
$
(0.39
)
 
$
0.15


For the three months ended September 30, 2018 and 2017, the Company incurred a net loss and accordingly excluded common stock equivalents for outstanding stock-based awards, which represented all potentially dilutive securities, of 3.8 million and 4.5 million, respectively, from the calculation of diluted net loss per share due to their anti-dilutive nature.
For the nine months ended September 30, 2018, the Company also incurred a net loss and accordingly excluded 3.7 million common stock equivalents for outstanding stock-based awards, which represented all potentially dilutive securities, from the calculation of diluted net loss per share as the impact was anti-dilutive. For the nine months ended September 30, 2017, the Company excluded 1.1 million of common stock equivalents for outstanding stock-based awards from the calculation of diluted net income per share due to their anti-dilutive nature.