NET INCOME PER SHARE - Note 5

3 Months Ended

Jun. 30, 2011

NET INCOME PER SHARE - Note 5

5. NET INCOME PER SHARE

Basic net income per share is computed by dividing net income available to common stockholders (numerator) by the weighted average number of vested, unrestricted common shares outstanding during the period (denominator). Diluted net income per share is computed on the basis of the weighted average number of shares of common stock outstanding plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include shares issuable upon exercise of outstanding stock options and warrants and under the employee stock purchase plan.

		Three Months Ended
		June 30,
		2011		2010
		(in thousands, except per share amounts)
Numerator:
Net income available to common stockholders	$	1,947	$	1,018
Denominator:
Common shares		62,264		63,438
Denominator for basic calculation		62,264		63,438
Employee stock options		3,168		1,034
Stock purchase rights		352		115
Employee stock purchase plan		24		18
Warrants		-		-
Denominator for diluted calculation		65,808		64,605
Net income per share
Basic	$	0.03	$	0.02
Diluted	$	0.03	$	0.02

The following shares attributable to outstanding stock options and warrants were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive (in thousands):

	Three Months Ended
	June 30,
	2011	2010
Employee stock options	785	5,010
Warrants	-	1,786
	785	6,796