Net Income Per Share

9 Months Ended

Sep. 30, 2011

Net Income Per Share

Net Income Per Share

Note 8—Net Income Per Share

Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing net income by the sum of weighted average number of common shares outstanding and the potential number of dilutive common shares outstanding during the period, excluding the effect of any anti-dilutive securities. Potential common shares consist of the shares issuable upon the exercise of stock options and SARs, the vesting of restricted stock awards and from withholdings associated with the Company’s employee stock purchase plan. Potential common shares are reflected in diluted earnings per share by application of the treasury stock method, which in the current period includes consideration of unamortized stock-based compensation and windfall tax benefits.

The following table sets forth the computation of basic and diluted net income (loss) per share for continuing operations and the Company’s discontinued operation (in thousands, except per-share data):

	Three Months Ended September 30						Nine Months Ended September 30
	2011			2010			2011		2010
Numerator:
Net income (loss):
Continuing operations	$	6,826		$	5,981		$	21,800	$	15,071
Discontinued operation	(27		)	(23		)	1,773		(98		)
Total operations	$	6,799		$	5,958		$	23,573	$	14,973
Denominator:
Denominator for basic net income (loss) per share- weighted average shares outstanding	51,625			51,267			52,114		51,470
Dilutive common equivalent shares:
Employee stock options and other	2,000			2,965			2,476		2,807
Denominator for diluted net income (loss) per share- weighted average shares outstanding, assuming exercise of potential dilutive common shares	53,625			54,232			54,590		54,277
Net income (loss) per share:
Basic:
Continuing operations	$	0.13		$	0.12		$	0.42	$	0.29
Discontinued operation	(0.00		)	(0.00		)	0.03		(0.00		)
Total operations	$	0.13		$	0.12		$	0.45	$	0.29
Diluted:
Continuing operations	$	0.13		$	0.11		$	0.40	$	0.28
Discontinued operation	(0.00		)	(0.00		)	0.03		(0.00		)
Total operations	$	0.13		$	0.11		$	0.43	$	0.28

Weighted average stock options, SARs and RSUs of approximately 3.7 million and 2.0 million for the three and nine months ended September 30, 2011, respectively, were excluded from the calculation of diluted net income per share because their inclusion would have been anti-dilutive. Similarly, weighted average stock options, SARs and RSUs of approximately 2.1 million and 1.8 million for the three and nine months ended September 30, 2010, respectively, were excluded from the calculation of diluted net income per share.