NET INCOME (LOSS) PER SHARE

12 Months Ended

Dec. 31, 2019

NOTE 13-NET INCOME (LOSS) PER SHARE

The following table sets forth the computation of basic and diluted net income (loss) per share for the years ended December 31, 2019, 2018 and 2017:

	Years Ended December 31,
	2019			2018		2017
	(in thousands)
Numerator:
Net income (loss)	$	(3,913	)	$	4,820	$	6,981
Denominator:
Weighted average shares outstanding-Basic		35,556		35,642		35,467
Potentially dilutive ordinary share equivalents-stock options and restricted stock		—		677		709
Weighted average shares outstanding-Diluted		35,556		36,319		36,176
Net income (loss) per share – Basic		(0.11	)	$	0.14	$	0.20
Net income (loss) per share – Diluted	$	(0.11	)	$	0.13	$	0.19

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, 2019 and 2018, nil and 1.5 million potential ordinary shares were dilutive.