(

)

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				Nine Months Ended
	September 30,				September 30,
	2019		2018		2019		2018
Basic weighted average common shares outstanding		7,432		7,366		7,419		7,338
Weighted average common equivalent shares due to stock, stock options and RSUs		61		69		57		68
Diluted weighted average common shares outstanding		7,493		7,435		7,476		7,406

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 both the

three

- and

nine

-month periods ended

September 30, 2019,

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

16,536

For the

three

- and

nine

-month periods ended

September

30,

2018,

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

zero

and

10,344,

respectively.