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 (loss) per share (in thousands, except per share amounts):



	Three Months Ended
	March 31,
	2018		2017
Numerator:
Income from continuing operations	$	2,502	$	860
Income from discontinued operations, net of income taxes	—		1,884
Net income	$	2,502	$	2,744
Denominator:
Weighted average common shares—basic	12,462		13,288
Effect of dilutive securities: stock options	—		—
Weighted average common shares—diluted	12,462		13,288
Income per share—basic:
Continuing operations	$	0.20	$	0.07
Discontinued operations	—		0.14
Net income per share—basic	$	0.20	$	0.21
Income per share—diluted:
Continuing operations	$	0.20	$	0.07
Discontinued operations	—		0.14
Net income per share—diluted	$	0.20	$	0.21

For the three months ended March 31, 2018, options to purchase 950,000 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 months ended March 31, 2017, 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.