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):



	Year Ended December 31,
	2017		2016		2015
Numerator:
Income from continuing operations	$	1,592	$	6,007	$	8,523
Income from discontinued operations, net of income taxes	1,938		624		2,341
Net income	$	3,530	$	6,631	$	10,864
Denominator:
Weighted average common shares—basic	12,882		13,997		14,722
Effect of dilutive securities: stock options	12		—		—
Weighted average common shares—diluted	12,894		13,997		14,722
Income per share—basic:
Continuing operations	$	0.12	$	0.43	$	0.58
Discontinued operations	0.15		0.04		0.16
Net income per share—basic	$	0.27	$	0.47	$	0.74
Income per share—diluted:
Continuing operations	$	0.12	$	0.43	$	0.58
Discontinued operations	0.15		0.04		0.16
Net income per share—diluted	$	0.27	$	0.47	$	0.74

For the years ended December 31, 2017, 2016 and 2015, options to purchase 550,000, 600,000 and 775,000 shares of common stock, respectively, were not included in the computation of diluted net income per share because the effect would have been anti-dilutive.