NET INCOME PER SHARE - Note 5

9 Months Ended

Dec. 31, 2011

Notes to Financial Statements

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 under the employee stock purchase plan.

		Three Months Ended				Nine Months Ended
		December 31,				December 31,
		2011		2010		2011		2010
		(in thousands, except per share amounts)
Numerator:
Net income available to common stockholders	$	2,586	$	1,496	$	5,365	$	4,483
Denominator:
Common shares		69,445		63,281		65,165		63,365
Denominator for basic calculation		69,445		63,281		65,165		63,365
Employee stock options		3,364		3,173		3,413		2,010
Stock purchase rights		385		319		409		188
Employee stock purchase plan		20		100		26		59
Denominator for diluted calculation		73,214		66,873		69,013		65,622
Net income per share
Basic	$	0.04	$	0.02	$	0.08	$	0.07
Diluted	$	0.04	$	0.02	$	0.08	$	0.07

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

	Three Months Ended		Nine Months Ended
	December 31,		December 31,
	2011	2010	2011	2010
Employee stock options and awards	604	690	637	2,242
	604	690	637	2,242