Net (Loss) Income per Share Attributable to Common Stockholders

Basic net (loss) income per share is computed by dividing net (loss) income attributable to common shareholders by the weighted-average number of common shares outstanding during the period. For the three and six months ended June 30, 2018 and July 1, 2017, we applied the two-class method to calculate basic and diluted net income per share of common stock, as our Series A Redeemable Convertible Preferred Stock (Series A Preferred Stock) is a participating security. The two-class method is an earnings allocated formula that treats a participating security as having rights to earnings that otherwise would have been available to common stockholders. We compute diluted net (loss) income per common share using net (loss) income as the “control number” in determining whether potential common shares are dilutive, after giving consideration to all potentially dilutive common shares, including stock options, unvested restricted stock outstanding during the period and potential issuance of stock upon the conversion of the our Series A Preferred Stock, including accrued dividends, outstanding during the period, except where the effect of such securities would be antidilutive.

The calculations of basic and diluted net (loss) income per share and basic and dilutive weighted-average shares outstanding for the three and six months ended June 30, 2018 and July 1, 2017 were as follows (in thousands, except per share data):



	Three Months Ended						Six Months Ended
	June 30, 2018			July 1, 2017			June 30, 2018			July 1, 2017
Numerator:
Basic:
Net (loss) income attributable to common stockholders	$	(834	)	$	874		$	1,020		$	1,066
Dilutive:
Net (loss) income attributable to common stockholders	$	(834	)	$	874		$	1,020		$	1,066
Plus: undistributed earnings allocated to participating securities	—			799			1,508			1,431
Less: undistributed earnings reallocated to participating securities	—			(788		)	(1,496		)	(1,420		)
Net (loss) income attributable to common stockholders	$	(834	)	$	885		$	1,032		$	1,077

Denominator:
Weighted-average shares outstanding - basic	30,591			29,556			30,792			29,352

Dilutive impact from:
Options outstanding	—			1,962			1,967			1,786
Restricted stock units	—			702			727			608
Weighted-average shares outstanding - dilutive	30,591			32,220			33,486			31,746

Net (loss) income per share attributable to common stockholders (Basic):	$	(0.03	)	$	0.03		$	0.03		$	0.04
Net (loss) income per share attributable to common stockholders (Diluted):	$	(0.03	)	$	0.03		$	0.03		$	0.03

The following equity shares were excluded from the calculation of diluted net income per share attributable to common stockholders because their effect would have been antidilutive for the periods presented (in thousands):



	Three Months Ended		Six Months Ended
	June 30, 2018	July 1, 2017	June 30, 2018	July 1, 2017
Stock options	4,002	1,398	971	1,292
Restricted stock units	2,514	24	685	14
Series A Redeemable Convertible Preferred Stock (as converted to common stock)	4,915	4,659	4,915	4,659

The Series A Preferred Stock is considered antidilutive due to the fact that the two-class method was more dilutive when calculating dilutive net income per share attributable to common stockholders.