(2) Net Income Per Share

Basic net income per share (“EPS”) is computed by dividing net income by the weighted-average number of common shares outstanding for the reporting period. Diluted EPS equals net income divided by the sum of the weighted average number of shares of common stock outstanding plus all additional common stock equivalents, such as stock options and restricted stock units, when dilutive.

The following is a reconciliation of basic and diluted net income per share:


	Three Months Ended				Six Months Ended
	July 2,		July 3,		July 2,		July 3,
(in thousands, except per share data)	2017		2016		2017		2016
Net (loss) income per share – basic:
Net (loss) income from continuing operations, net of taxes	$	(1,261)	$	113	$	(2,507)	$	262
Net income from discontinued operations, net of taxes		—		27		—		708
Net (loss) income		(1,261)		140		(2,507)		970
Weighted average shares outstanding		6,955		6,949		6,955		6,949
Net (loss) income from continuing operations per share – basic	$	(0.18)	$	0.02	$	(0.36)	$	0.04
Net income from discontinued operations per share – basic		—		0.00		—		0.10
Net (loss) income per share – basic	$	(0.18)	$	0.02	$	(0.36)	$	0.14

Net (loss) income per share – diluted:
Net (loss) income from continuing operations, net of taxes	$	(1,261)	$	113	$	(2,507)	$	262
Net income from discontinued operations, net of taxes		—		27		—		708
Net (loss) income		(1,261)		140		(2,507)		970
Weighted average shares outstanding		6,955		6,949		6,955		6,949
Dilutive impact of stock equivalents outstanding		—		9		—		9
Adjusted weighted average shares outstanding		6,955		6,958		6,955		6,958
Net (loss) income from continuing operations per share – diluted	$	(0.18)	$	0.02	$	(0.36)	$	0.04
Net income from discontinued operations per share – diluted		—		0.00		—		0.10
Net (loss) income per share – diluted	$	(0.18)	$	0.02	$	(0.36)	$	0.14

There were approximately 629,000 and 659,000 options outstanding for the three and six months ended July 2, 2017 and July 3, 2016, respectively, that were not included in the computation of diluted EPS because their impact was anti-dilutive.