Net Income Per Share

6 Months Ended

Jun. 30, 2015

NET INCOME PER SHARE

Basic net income per share is computed using the weighted average number of common shares outstanding for the period, excluding unvested restricted stock and RSUs. Diluted net income per share is based upon the weighted average common shares outstanding for the period plus dilutive potential shares including unvested restricted stock, RSUs, and stock options using the treasury stock method. The following is a reconciliation of the numerators and denominators used in computing basic and diluted net income per share:



	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
	(in thousands except per share amounts)				(in thousands except per share amounts)
Numerator:
Net income	$	1,595	$	169	$	1,536	$	2,033
Denominator:
Shares used in computation of basic net income per share (weighted average common shares outstanding)	28,070		28,383		27,944		28,376
Dilutive potential common shares:
Restricted Stock and RSUs	155		159		222		273
Stock options	681		668		613		681
Shares used in computation of diluted net income per share	28,906		29,210		28,779		29,330
Basic net income per share	$	0.06	$	0.01	$	0.05	$	0.07
Diluted net income per share	$	0.06	$	0.01	$	0.05	$	0.07

For the three months and six months ended June 30, 2015, options to purchase approximately 1.3 million and 2.1 million shares of common stock, respectively, with exercise prices greater than the average fair market value of the Company’s stock of $11.28 and $10.08 per share, respectively, were not included in the calculation because the effect would have been anti-dilutive.

For the three months and six months ended June 30, 2014, options to purchase approximately 1.6 million and 1.5 million shares of common stock, respectively, with exercise prices greater than the average fair market value of the Company’s stock of $10.85 and $11.03 per share, respectively, were not included in the calculation because the effect would have been anti-dilutive.