NOTE 8: NET INCOME (LOSS) PER SHARE OF COMMON STOCK

Basic net income (loss) per share is computed based on the weighted average number of shares of common stock outstanding during each period. Diluted net income (loss) 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.”


	Nine months ended September 30,					Three months ended September 30,
	2018 (unaudited)			2017 (unaudited)		2018 (unaudited)		2017 (unaudited)
Numerator:
Net income (loss)	$	(1,729	)	$	13,865	$	2,543	$	5,850

Denominator (in thousands):
Basic weighted-average common stock outstanding		22,091			21,687		21,997		21,946
Effect of stock -based awards		—			793		431		737

Diluted weighted average common stock outstanding		22,091			22,480		22,428		22,683

Basic net income (loss) per share	$	(0.08	)	$	0.64	$	0.12	$	0.27

Diluted net income (loss) per share	$	(0.08		$	0.62	$	0.11	$	0.26

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 136,113 shares for the three months ended September 30, 2018. The total number of shares related to the outstanding equity-based awards excluded from the calculation of diluted net loss per share was 1,273,610 for the nine months ended September 30, 2018. 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 0 and 39,856 shares for the three and nine months ended September 30, 2017, respectively.