Net Income Per Share

Basic net income per share is computed using the weighted-average number of common shares outstanding for the period. Diluted net income per share is computed by adjusting the weighted-average number of common shares outstanding for the effect of dilutive potential common shares outstanding during the period. Potential common shares included in the diluted calculation consist of incremental shares issuable upon the exercise of outstanding stock options calculated using the treasury stock method.

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



	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Numerator:
Income from continuing operations	$	633	$	1,798	$	1,493	$	3,623
Income from discontinued operations, net of income taxes	54		222		1,938		446
Net income	$	687	$	2,020	$	3,431	$	4,069
Denominator:
Weighted average common shares—basic	13,030		14,066		13,224		14,246
Effect of dilutive securities: stock options	28		—		5		—
Weighted average common shares—diluted	13,058		14,066		13,229		14,246
Income per share—basic:
Continuing operations	$	0.05	$	0.13	$	0.11	$	0.26
Discontinued operations	—		0.01		0.15		0.03
Net income per share—basic	$	0.05	$	0.14	$	0.26	$	0.29
Income per share—diluted:
Continuing operations	$	0.05	$	0.13	$	0.11	$	0.26
Discontinued operations	—		0.01		0.15		0.03
Net income per share—diluted	$	0.05	$	0.14	$	0.26	$	0.29

For the three and six months ended June 30, 2017, options to purchase 200,000 shares of common stock were not included in the computation of diluted net income per share because the effect would have been anti-dilutive. For the three and six months ended June 30, 2016, options to purchase 600,000 shares of common stock were not included in the computation of diluted net income per share because the effect would have been anti-dilutive.