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, 2017
Earnings Per Share [Abstract]  
Net Income (Loss) Per Share
Net Income (Loss) Per Share
Net income (loss) per share is computed as required by the accounting standard for earnings per share, or EPS. Basic 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.
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2017
 
2016
 
2017
 
2016
 
(in thousands, except per share amounts)
Numerator:
 
 
 
 
 
 
 
Net income (loss)
$
(9,167
)
 
$
9,679

 
$
10,261

 
$
52,944

Denominator:
 
 
 
 
 
 
 
Weighted average common shares outstanding—basic
66,712

 
64,241

 
65,950

 
63,454

Dilutive common stock equivalents
—

 
3,591

 
3,541

 
3,900

Weighted average common shares outstanding—diluted
66,712

 
67,832

 
69,491

 
67,354

Net income (loss) per share:
 
 
 
 
 
 
 
Basic
$
(0.14
)
 
$
0.15

 
$
0.16

 
$
0.83

Diluted
$
(0.14
)
 
$
0.14

 
$
0.15

 
$
0.79


The Company excluded 1.1 million common stock equivalents for outstanding stock-based awards for the nine months ended September 30, 2017 and 1.5 million and 1.0 million for the three and nine months ended September 30, 2016, respectively, from the calculation of diluted net income per share due to their anti-dilutive nature. For the three months ended September 30, 2017, the Company incurred a net loss and accordingly excluded 4.5 million common stock equivalents, which represented all potentially dilutive securities from diluted net loss per share as the impact was anti-dilutive.