Earnings Per Share

6 Months Ended

Jun. 30, 2021

7. Earnings Per Share

Basic earnings per share is computed using the weighted-average number of outstanding shares of common stock during the period. Diluted earnings per share is computed using the weighted-average number of outstanding shares of common stock and, when dilutive, potential shares of common stock outstanding during the period. Potential shares of common stock consist of incremental shares issuable upon the assumed exercise of stock options and vesting of restricted stock units utilizing the treasury stock method.

The computation of diluted earnings per share is as follows:

	For the Three Months Ended June 30,					For the Six Months Ended June 30,
(in thousands, except per share data)	2021		2020			2021		2020
	(unaudited)					(unaudited)
Net income (loss)	$	643	$	(2,525	)	$	1,001	$	(6,105	)
Shares used in computation:
Weighted-average common stock outstanding		19,268		18,837			19,235		18,660
Common stock equivalents		542		—			551		—
Weighted-average number of shares		19,810		18,837			19,786		18,660
Diluted earnings per share	$	0.03	$	(0.13	)	$	0.05	$	(0.33	)

Employee stock options with exercise prices greater than the average market price of the common stock were excluded from the diluted calculation as their inclusion would have been anti-dilutive. The following table summarizes the potential shares of common stock excluded from the diluted calculation:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
(in thousands)	2021		2020		2021		2020
	(unaudited)				(unaudited)
Common stock equivalents excluded due to net loss		—		293		—		401
Employee stock options and RSU's		24		68		31		103
		24		361		31		504