Net Income Per Share

3 Months Ended

Mar. 31, 2021

Net Income Per ShareBasic net income per share is computed by dividing net income for the period by the weighted-average number of shares outstanding during the period. In periods of net loss, all potential common shares are anti-dilutive, so diluted net loss per share equals the basic net loss per share. In periods of net income, diluted net income per share is computed by dividing net income for the period by the basic weighted-average number of shares plus any dilutive potential common stock outstanding during the period, using the treasury stock method. Potential common stock includes the effect of outstanding dilutive stock options, restricted stock awards, and restricted stock units, as well as shares the Company could be obligated to issue from its convertible senior notes and warrants, as described in Note 10, Convertible Senior Notes. Any anti-dilutive weighted-average dilutive shares related to stock award plans, convertible senior notes, and warrants are excluded from the computation of the diluted net income per share.

The basic and diluted net income per share calculations for the three months ended March 31, 2021 and 2020 were as follows:


	Three Months Ended March 31,
	2021		2020

	(In thousands, except per share data)
Net income	$	14,127	$	11,311
Weighted-average shares outstanding – basic	42,962		42,357
Effect of dilutive securities from stock award plans	1,980		1,264
Effect of convertible senior notes	1,425		—
Weighted-average shares outstanding – diluted	46,367		43,621


Net income per share – basic	$	0.33	$	0.27
Net income per share – diluted	$	0.30	$	0.26

Anti-dilutive weighted-average shares related to stock award plans	287		1,744
Anti-dilutive weighted-average shares related to warrants	5,908		—