(

)

Income Per Share

Basic income per share is based on the weighted average number of shares of common stock outstanding. Diluted income per share is based upon the weighted average number of common shares outstanding and dilutive common stock equivalent shares outstanding during each period.

The weighted average number of shares used to compute basic and diluted net income per share consisted of the following (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
Weighted average common shares outstanding, basic		7,239		7,175		7,228		7,159
Weighted average common equivalent shares due to stock options and RSUs		84		75		84		79
Weighted average common shares outstanding, diluted		7,323		7,250		7,312		7,238

The computation of diluted earnings per share excludes the effect of the potential exercise of stock awards, including stock options, when the average market price of the common stock is lower than the exercise price of the related options during the period. These outstanding stock awards are

not

included in the computation of diluted income per share because the effect would be antidilutive. For the

three

- and

six

-month periods ended

June 30, 2017

, the number of stock awards excluded from the computation of diluted earnings per share for this reason was

12,336

and

27,336,

respectively. For the

three

- and

six

-month periods ended

June 30, 2016

, the number of stock awards excluded from the computation of diluted earnings per share for this reason was

52,377

and

53,695,

respectively.