Earnings Per Share

9 Months Ended

Sep. 30, 2020

Note 13. Earnings per share

Basic net earnings (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares outstanding during the period. Diluted net earnings per share is computed by giving effect to all potentially dilutive ordinary share equivalents outstanding for the period. For purposes of this calculation, share options, RSUs, and RSAs are considered to be ordinary share equivalents but are excluded from the calculation of diluted earnings (loss) per share when including them would have an anti-dilutive effect. The following table sets forth the computation of basic and diluted net earnings (loss) per share (unaudited and in thousands, except for share and per share data):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2020		2019			2020
Numerator:
Net income (loss)	$	1,960	$	5,595	$	(16,552	)	$	8,069
Denominator:
Basic weighted average shares outstanding		25,634,417		25,691,357		17,743,703			25,683,969
Dilutive effect of share option awards		—		281,244		—			—
Dilutive effect of restricted share units and restricted share awards		—		374,072		—			183,195
Diluted weighted average shares outstanding		25,634,417		26,346,673		17,743,703			25,867,164
Net earnings (loss) per share, basic	$	0.08	$	0.22	$	(0.93	)	$	0.31
Net earnings (loss) per share, diluted	$	0.08	$	0.21	$	(0.93	)	$	0.31

The following outstanding shares of ordinary share equivalents were excluded from the computation of diluted net loss per share for the periods presented because including them would have had an anti-dilutive effect (unaudited and in thousands):

	Three Months Ended September 30,					Nine Months Ended September 30,
	2019		2020		2019			2020
Share options		—		1,966			2,076		2,821
Restricted shares (RSUs and RSAs)		—		—			268		240
Total		—		1,966			2,344		3,061