Net Income (Loss) Per Share

Basic net income (loss) per share is computed using the weighted-average number of common shares outstanding for the period. Diluted net income (loss) 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					Nine Months Ended
	September 30,					September 30,
	2018		2017			2018		2017
Numerator:
Income (loss) from continuing operations	$	118	$	(576	)	$	3,097	$	917
Income (loss) from discontinued operations, net of income taxes	—		—			—		1,938
Net income	$	118	$	(576	)	$	3,097	$	2,855
Denominator:
Weighted average common shares—basic	12,314		12,628			12,412		13,023
Effect of dilutive securities: stock options	349		—			218		17
Weighted average common shares—diluted	12,663		12,628			12,630		13,040
Income (loss) per share—basic:
Continuing operations	$	0.01	$	(0.05	)	$	0.25	$	0.07
Discontinued operations	—		—			—		0.15
Net income (loss) per share—basic	$	0.01	$	(0.05	)	$	0.25	$	0.22
Income (loss) per share—diluted:
Continuing operations	$	0.01	$	(0.05	)	$	0.25	$	0.07
Discontinued operations	—		—			—		0.15
Net income (loss) per share—diluted	$	0.01	$	(0.05	)	$	0.25	$	0.22

For the three and nine months ended September 30, 2018, options to purchase 220,000 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 nine months ended September 30, 2017, options to purchase 562,500 and 162,500 shares of common stock were not included in the computation of diluted net income per share because the effect would have been anti-dilutive.