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,
	2019		2018		2019		2018
Numerator:
Net income	$	1,328	$	477	$	4,448	$	2,979
Denominator:
Weighted average common shares—basic	12,003		12,462		11,959		12,462
Effect of dilutive securities: stock options	275		318		292		160
Weighted average common shares—diluted	12,278		12,780		12,251		12,622

Net income per share—basic	$	0.11	$	0.04	$	0.37	$	0.24
Net income per share—diluted	$	0.11	$	0.04	$	0.36	$	0.24

For the three and six months ended June 30, 2019, 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, 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.