Quarterly report pursuant to Section 13 or 15(d)

Net Income (Loss) Per Share

v3.19.1
Net Income (Loss) Per Share
 3 Months Ended
Mar. 31, 2019
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 March 31,
 
2019
 
2018
 
(in thousands, except per share amounts)
Numerator:
 
 
 
Net income (loss)
$
(4,851
)
 
$
1,847

Denominator:
 
 
 
Weighted average common shares outstanding—basic
69,968

 
67,674

Dilutive common stock equivalents
—

 
2,766

Weighted average common shares outstanding—diluted
69,968

 
70,440

Net income (loss) per share:
 
 
 
Basic
$
(0.07
)
 
$
0.03

Diluted
$
(0.07
)
 
$
0.03


For the three months ended March 31, 2019, the Company incurred a net loss and accordingly excluded common stock equivalents for outstanding stock-based awards, which represented all potentially dilutive securities, of 2.9 million from the calculation of diluted net loss per share due to their anti-dilutive nature. For the three months ended March 31, 2018, the Company excluded 1.0 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.