NOTE 6: NET INCOME PER SHARE OF COMMON STOCK

Basic net income per share is computed based on the weighted average number of shares of common stock outstanding during each period. Diluted net income per share is computed based on the weighted average number of shares of common stock outstanding during each period, plus dilutive potential shares of common stock considered outstanding during the period, in accordance with FASB ASC No. 260, “Earnings Per Share.”


	Six months ended June 30,				Three months ended June 30,
	2017		2016		2017		2016
	(unaudited)		(unaudited)		(unaudited)		(unaudited)
Numerator:
Net income	$	8,015	$	4,511	$	3,908	$	2,711

Denominator (in thousands):
Basic weighted-average common stock outstanding		21,556		20,562		21,712		20,604
Effect of stock -based awards		820		587		851		767

Diluted weighted average common stock outstanding		22,376		21,149		22,563		21,371

Basic net income per share	$	0.37	$	0.22	$	0.18	$	0.13

Diluted net income per share	$	0.36	$	0.21	$	0.17	$	0.13

The weighted average number of shares related to outstanding equity-based awards excluded from the calculation of diluted net income per share, since their effect was anti-dilutive, was 15,569 and 59,785 shares for the three and six months ended June 30, 2017, respectively, and 832,125 and 793,654 for the corresponding periods of 2016.