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Net Income per Common Share
9 Months Ended
Sep. 30, 2011
Net Income per Common Share [Abstract] 
Net Income per Common Share
Note 8. Net Income per Common Share
Basic net income per common share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period. Diluted net income per common share is computed by dividing net income by the weighted average number of shares of common stock outstanding during the period, adjusted for the dilutive effect of common stock equivalents, which consist of stock options. The dilutive effect of stock options is calculated using the treasury stock method.
The tables below set forth the reconciliation of the numerators and denominators of the basic and diluted net income per common share computations (in thousands, except per share amounts):
                         
    Net             Per Share  
Three Months Ended September 30,   Income     Shares     Amount  
2010
                       
 
                       
Basic net income
  $ 3,173       48,860     $ 0.06  
Effect of dilutive shares
    —       398       —  
 
                 
 
                       
Diluted net income
  $ 3,173       49,258     $ 0.06  
 
                 
 
                       
2011
                       
 
                       
Basic net income
  $ 4,327       49,234     $ 0.09  
Effect of dilutive shares
    —       77       —  
 
                 
 
                       
Diluted net income
  $ 4,327       49,311     $ 0.09  
 
                 
                         
    Net             Per Share  
Nine Months Ended September 30,   Income     Shares     Amount  
2010
                       
 
                       
Basic net income
  $ 5,751       48,789     $ 0.12  
Effect of dilutive shares
    —       373       —  
 
                 
 
                       
Diluted net income
  $ 5,751       49,162     $ 0.12  
 
                 
 
                       
2011
                       
 
                       
Basic net income
  $ 9,201       49,092     $ 0.19  
Effect of dilutive shares
    —       205       —  
 
                 
 
                       
Diluted net income
  $ 9,201       49,297     $ 0.19  
 
                 
In computing diluted net income per common share, options to purchase 2,609,000 and 4,180,000 shares of common stock were excluded from the computations for the three months ended September 30, 2010 and 2011, respectively, and options to purchase 2,731,000 and 3,353,000 shares of common stock were excluded from the computations for the nine months ended September 30, 2010 and 2011, respectively. These options were excluded from the computations because the exercise prices of such options were greater than the average market price of our common stock during the respective period.