NET INCOME PER SHARE

12 Months Ended

Dec. 31, 2018

NOTE 13-NET INCOME PER SHARE

The following table sets forth the computation of basic and diluted net income per share for the years ended December 31, 2018, 2017 and 2016:

	Years Ended December 31,
	2018		2017		2016
	(in thousands)
Numerator:
Net income attributable to UTStarcom Holdings Corp.	$	4,820	$	6,981	$	290
Denominator:
Weighted average shares outstanding-Basic		35,642	35,467		35,806
Potentially dilutive common stock equivalents-stock options and restricted stock		677	709		596
Weighted average shares outstanding-Diluted		36,319	36,176		36,402
Net Income per share attributable to UTStarcom Holdings Corp.- Basic		0.14	$	0.20	$	0.01
Net Income per share attributable to UTStarcom Holdings Corp.-Diluted	$	0.13	$	0.19	$	0.01

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 years ended December 31, 2018 and 2017, 1.5 million and 1.2 million potential ordinary shares were dilutive.