NET INCOME (LOSS) PER SHARE

12 Months Ended

Dec. 31, 2017

NOTE 12-NET INCOME (LOSS) PER SHARE

The following table sets forth the computation of basic and diluted net loss per share for the years ended December 31, 2017, 2016 and 2015:

	Years Ended December 31,
	2017		2016		2015
	(in thousands)
Numerator:
Net income (loss) attributable to UTStarcom Holdings Corp.	$	6,981	$	290	$	(27,158	)
Denominator:
Weighted average shares outstanding-Basic	35,467		35,806		37,003
Potentially dilutive common stock equivalents-stock options and restricted stock	709		596		—

Weighted average shares outstanding-Diluted	36,176		36,402		37,003

Net Income(loss) per share attributable to UTStarcom Holdings Corp.- Basic	$	0.20	$	0.01	$	(0.74	)

Net Income(loss) per share attributable to UTStarcom Holdings Corp.-Diluted	$	0.19	$	0.01	$	(0.74	)

The dilutive effect of share-based awards is reflected in diluted net loss per share by application of the treasury stock method, which includes consideration of unamortized share-based compensation expense and the dilutive effect of in-the-money options and unvested restricted stock units. Under the treasury stock method, the amount the employee must pay for exercising stock options and unamortized share-based compensation expense are assumed proceeds to be used to repurchase hypothetical shares. An increase in the fair market value of the Company’s ordinary share can result in a greater dilutive effect from potentially dilutive awards.

For the year ended December 31, 2015, no potential ordinary shares were dilutive because of the net loss incurred in that year, therefore basic and dilutive EPS were the same.

For the years ended December 31, 2016 and 2017, 1.4 million and 1.2 million potential ordinary shares were dilutive.