Computation of Net Income (Loss) per Common Share

Basic net income (loss) per share (“EPS”) is computed by dividing net income (loss) by the weighted-average number of common shares outstanding for the period. Where applicable, diluted EPS is computed by dividing the net income (loss) by the weighted-average number of common shares and dilutive common equivalent shares outstanding during the period, calculated using the treasury stock method. Common equivalent shares include the effect of restricted stock, exercise of stock options and warrants and contingently issuable shares. Stock options that are out-of-the-money with exercise prices greater than the average market price of the underlying Common Shares and equity awards with performance shares where the contingency was not met are excluded from the computation of diluted EPS as the effect of their inclusion would be anti-dilutive. For the three months ended December 31, 2018, 0.5 million shares were not included in the calculation of diluted EPS as they were considered anti-dilutive, of which 0.3 million relate to outstanding stock options, and 0.2 million relate to outstanding equity awards. For the nine months ended December 31, 2018, 1.1 million shares were not included in the calculation of diluted EPS as they were considered anti-dilutive, of which 0.3 million relate to outstanding stock options, 0.6 million relate to outstanding warrants and 0.2 million relate to outstanding equity awards. For the three and nine months ended December 31, 2017, 1.2 million shares were not included in the calculation of diluted EPS as they were considered anti-dilutive, of which 0.3 million relate to outstanding stock options, and 0.9 million relate to outstanding warrants.

The following table reconciles the numerators and denominators of the earnings per share calculation for the three and nine months ended December 31, 2018 and 2017 (in thousands, except per share data):



	Three months ended December 31,						Nine months ended December 31,
	2018			2017			2018			2017
Numerator:
Net income (loss)	$	17,293		$	(4,248	)	$	35,114		$	(26,782	)
Denominator:
Weighted-average shares of common stock outstanding	21,396			20,889			21,216			19,189
Weighted-average shares subject to repurchase	(977		)	(940		)	(916		)	(575		)
Shares used in per-share calculation ― basic	20,419			19,949			20,300			18,614
Shares used in per-share calculation ― diluted	20,864			19,949			20,538			18,614
Net income (loss) per share ― basic	$	0.85		$	(0.21	)	$	1.73		$	(1.44	)
Net income (loss) per share ― diluted	$	0.83		$	(0.21	)	$	1.71		$	(1.44	)