Net Income Per Share

Basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding for the period. Diluted net income per share is computed by dividing the net income for the period by the weighted average number of common and common equivalent shares outstanding during the period. Diluted net income per share is computed giving effect to all potential dilutive common stock equivalent shares, including options and restricted stock units. The dilutive effect of outstanding awards is reflected in diluted net income per share by application of the treasury stock method.

The following table sets forth the computation of basic and diluted net income per share (in thousands, except per share amounts):



	Year Ended December 31,
	2018		2017		2016
Basic:
Numerator:
Net income	$	241	$	25,426	$	304
Denominator:
Net weighted-average number of common stock shares outstanding	19,294		18,512		18,272
Net income per share—basic:	$	0.01	$	1.37	$	0.02
Diluted:
Numerator:
Net income	$	241	$	25,426	$	304
Denominator:
Net weighted average number of common stock shares outstanding	19,294		18,512		18,272
Dilutive effect of common stock	1,115		535		42
Total common stock shares used in per share calculation	20,409		19,047		18,314
Net income per share—diluted	$	0.01	$	1.33	$	0.02

For each of the years ended December 31, 2018, 2017 and 2016, we had securities outstanding that could potentially dilute net income per share, but the shares from the assumed conversion or exercise of these securities were excluded in the computation of diluted net income per share as their effect would have been anti-dilutive. The number of outstanding anti-dilutive shares that were excluded from the computation of diluted net income per share consisted of the following (in thousands):



	Year Ended December 31,
	2018	2017	2016
Common stock options	291	908	1,222
Restricted stock units	13	1,296	768
Total	304	2,204	1,990