Net Income (Loss) Per Share

3 Months Ended

Mar. 31, 2017

NET INCOME (LOSS) PER SHARE

The following table sets forth a reconciliation of basic and diluted net income (loss) per share (in thousands, except per share amounts):



	Three Months Ended March 31,
	2017			2016
Net income (loss)	$	16,700		$	(59,223	)
Net income allocated to participating securities - 2014 Warrants	(57		)	—
Net income allocable to common stock for basic net income (loss) per share	16,643			(59,223		)
Adjustment to net income allocated to participating securities	3			—
Net income allocable to common stock for diluted net income (loss) per share	$	16,646		$	(59,223	)

Weighted-average shares of common stock outstanding	290,870			228,304
Dilutive securities:
Outstanding stock options, unvested RSUs and ESPP contributions	18,665			—
Weighted-average shares of common stock outstanding and dilutive securities	309,535			228,304

Net income (loss) per share, basic	$	0.06		$	(0.26	)
Net income (loss) per share, diluted	$	0.05		$	(0.26	)

The 2014 Warrants are participating securities and the warrant holders do not have a contractual obligation to share in our losses. See “Note 8 - Common Stock and Warrants” to our Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2016 filed with the SEC on February 27, 2017 for a description of the 2014 Warrants.

The following table sets forth potentially dilutive shares of common stock that are not included in the computation of diluted net income (loss) per share because to do so would be anti-dilutive (in thousands):



	March 31
	2017	2016
2019 Notes	—	54,118
Deerfield Notes	33,890	33,890
Outstanding stock options, unvested RSUs and ESPP contributions	1,396	31,364
Warrants	—	1,000
Total potentially dilutive shares	35,286	120,372

The 2019 Notes were converted and redeemed between August and November 2016.