Net Income (Loss) Per Share

3 Months Ended

Mar. 31, 2021

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

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


	Three Months Ended March 31,
		2021		2020
Numerator:
Net income (loss)		$	(800)	$	3,452
Denominator:
Shares used in per share calculation – basic		26,620		24,719
Dilutive effect of common stock		—		1,460
Shares used in diluted share calculation		26,620		26,179

Net income (loss) per share – basic		$	(0.03)	$	0.14
Net income (loss) per share – diluted		$	(0.03)	$	0.13

For each of the three months ended March 31, 2021 and 2020, we had securities outstanding that could potentially dilute per share amounts, but the shares from the assumed conversion or exercise of these securities were excluded in the computation of diluted net income (loss) 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 (loss) per share consisted of the following (in thousands):

Three Months Ended March 31,

2021

2020*

Common stock options

363

n/a

Restricted stock units

1,090

n/a

ESPP

n/a

Total

1,460

n/a

_________

* There were no antidilutive shares for this period.