Annual report pursuant to Section 13 and 15(d)

Net Loss Per Share

v3.10.0.1
Net Loss Per Share
 12 Months Ended
Dec. 31, 2018
Earnings Per Share [Abstract]  
Net 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 earnings per share:
 
Years Ended December 31,
 
2018
 
2017
 
2016
 
(in thousands, except per share amounts)
Numerator:
 
 
 
 
 
Net income (loss)
$
(26,199
)
 
$
(9,187
)
 
$
61,292

Denominator:
 
 
 
 
 
Weighted average common shares outstanding—basic
68,490

 
66,252

 
63,781

Dilutive common stock equivalents
—

 
—

 
3,872

Weighted average common shares outstanding—diluted
68,490

 
66,252

 
67,653

Net income (loss) per share:
 
 
 
 
 
Basic
$
(0.38
)
 
$
(0.14
)
 
$
0.96

Diluted
$
(0.38
)
 
$
(0.14
)
 
$
0.91


For the years ended December 31, 2018 and 2017, the Company incurred net losses and accordingly excluded common stock equivalents, which represented all potentially dilutive securities, of 3.7 million and 4.5 million, respectively, from the calculation of diluted net loss per share due to their anti-dilutive nature. The Company excluded 0.8 million common stock equivalents resulting from outstanding equity awards for the year ended December 31, 2016 from the calculation of diluted net income per share due to their anti-dilutive nature.