Basic earnings per share is computed by dividing net income (loss) for the period by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is calculated by dividing net income by the weighted-average number of common shares and potentially dilutive securities outstanding during the period using the treasury stock method for the Company’s stock options, restricted stock units, and shares issuable under the ESPP, and the if-converted method for the 2024 Notes.

As noted in Note 6, “Debt,” the principal amount of the 2024 Notes was settled in cash while the conversion spread value was settled in shares.


	Three Months Ended
(in thousands, except per share amounts)	March 28, 2025		March 29, 2024
Numerator:
Net income (loss)	$	5,940	$	(8,089)
Denominator:
Weighted average number of shares outstanding:
Basic	116,319		112,350


Restricted stock units	687		—
Stock purchase rights under the ESPP	15		—
Diluted	117,021		112,350
Net income (loss) per share:
Basic	$	0.05	$	(0.07)
Diluted	$	0.05	$	(0.07)

The following table sets forth the potential dilutive shares that were excluded from the computation of diluted net income (loss) per share, because their effects were anti-dilutive:


	Three Months Ended
(in thousands)	March 28, 2025	March 29, 2024
2024 Notes	—	4,287
Restricted stock units	753	3,197
Stock purchase rights under the ESPP	—	316
Total	753	7,800