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				Six Months Ended
	June 30,				June 30,
	2018		2017		2018			2017
Numerator:
Income from continuing operations	$	477	$	633	$	2,979		$	1,493
Income from discontinued operations, net of income taxes	—		54		—			1,938
Net income	$	477	$	687	$	2,979		$	3,431
Denominator:
Weighted average common shares—basic	12,462		13,030		12,462			13,224
Effect of dilutive securities: stock options	318		28		160			5
Weighted average common shares—diluted	12,780		13,058		12,622			13,229
Income per share—basic:
Continuing operations	$	0.04	$	0.05	$	0.24		$	0.11
Discontinued operations	—		—		—			0.15
Net income per share—basic	$	0.04	$	0.05	$	0.24		$	0.26
Income per share—diluted:
Continuing operations	$	0.04	$	0.05	$	0.24		$	0.11
Discontinued operations	—		—		—		0.14	0.15
Net income per share—diluted	$	0.04	$	0.05	$	0.24		$	0.26

For the three and six months ended June 30, 2018, options to purchase 300,000 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, 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.