Quarterly report pursuant to Section 13 or 15(d)

Net Income (Loss) Per Share

Net Income (Loss) Per Share

6 Months Ended

Jun. 30, 2016

3. Net Income (Loss) Per Share

Basic net income (loss) per share excludes the effect of dilution and is computed by dividing net income (loss) by the weighted-average number of shares outstanding for the period. Diluted net income (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue shares were exercised into shares. In calculating diluted net income (loss) per share, the numerator is adjusted for the change in the fair value of the warrant liability (only if dilutive) and the denominator is increased to include the number of potentially dilutive common shares assumed to be outstanding during the period using the treasury stock method.

The following table sets forth the reconciliation of the numerator and denominator used in the computation of basic and diluted net income (loss) per common share for the three and six months ended June 30, 2016 and 2015:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands, except per share amounts)	2016		2015		2016		2015
Numerator:
Net income (loss) used for basic earnings per share	$	11,928	$	(2,281)	$	10,082	$	(7,178)
Less change in fair value of warrant liability		—		—		—		—
Net income (loss) used for diluted earnings per share	$	11,928	$	(2,281)	$	10,082	$	(7,178)
Denominator:
Basic weighted-average outstanding common shares		20,508		20,060		20,284		20,045
Effect of dilutive potential common shares resulting from options		254		13		129		10
Effect of dilutive potential common shares resulting from warrants		1,116		—		810		—
Weighted-average shares outstanding—diluted		21,878		20,073		21,223		20,055
Net income (loss) per common share:
Basic	$	0.58	$	(0.11)	$	0.50	$	(0.36)
Diluted	$	0.55	$	(0.11)	$	0.48	$	(0.36)

The table below presents common shares underlying stock options and warrants that are excluded from the calculation of the weighted average number of common shares outstanding used for the calculation of diluted net income (loss) per common share. These are excluded from the calculation due to their anti-dilutive effect for the three and six months ended June 30, 2016 and 2015:

	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2016		2015		2016		2015
Weighted-average anti-dilutive common shares resulting from options		1,244		1,354		1,280		1,319
Weighted-average anti-dilutive common shares resulting from warrants		—		153		12		343
		1,244		1,507		1,292		1,662