NET INCOME PER SHARE

Basic net income per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is computed by dividing net income by the weighted-average number of shares of common stock outstanding, plus the dilutive effects of stock options, restricted stock units (“RSUs”) including performance stock units (“PSUs”), and the employee stock purchase plan (“ESPP”). Dilutive shares of common stock are determined by applying the treasury stock method.

A reconciliation of the numerator and denominator used in the calculation of basic and diluted net income per share is as follows (in thousands, except per share amounts):



	Three Months Ended
	March 31, 2015		March 31, 2014
Numerator:
Net income	$	1,560	$	8,393

Denominator:
Basic shares:
Weighted-average common stock outstanding—basic	168,077		162,391
Diluted shares:
Weighted-average common stock outstanding—basic	168,077		162,391
Effect of potentially dilutive securities:
Stock options	3,837		5,196
RSUs (including PSUs)	1,741		484
ESPP	65		43
Weighted-average shares used to compute diluted net income per share	173,720		168,114
Net income per share:
Basic	$	0.01	$	0.05
Diluted	$	0.01	$	0.05

The following weighted-average shares of common stock were excluded from the computation of diluted net income per share for the periods presented, as their effect would have been anti-dilutive (in thousands):



	Three Months Ended
	March 31, 2015	March 31, 2014
Stock options	249	5,079
RSUs (including PSUs)	1,333	1,348
ESPP	169	358
	1,751	6,785