Net Income Per Share

12 Months Ended

Dec. 31, 2015

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 computed using the weighted average common shares outstanding for the period plus dilutive potential shares including assumed release of unvested restricted stock and RSUs, assumed exercise of stock options, and assumed issuance of common stock under ESPP 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:



	Years Ended December 31,
	2015		2014		2013
	(In thousands, except per share amounts)
Numerator:
Net income	$	2,858	$	4,123	$	40,155
Denominator:
Shares used in computation of basic net income per share (weighted average common shares outstanding)	28,097		28,246		28,190
Dilutive potential common shares:
Stock options, ESPP, Restricted Stock and RSUs	918		898		1,148
Shares used in computation of diluted net income per share	29,015		29,144		29,338
Basic net income per share:	$	0.10	$	0.15	$	1.42
Diluted net income per share:	$	0.10	$	0.14	$	1.37

The Company includes the underlying market condition stock options in the calculation of diluted earnings per share if the performance condition has been satisfied as of the end of the reporting period and excludes such options if the performance condition has not been met.

For the year ended December 31, 2015, options to purchase approximately 1.2 million shares of common stock with an exercise price greater than the average fair market value of the Company’s stock of $11.16 per share were not included in the calculation because the effect would have been anti-dilutive.

For the year ended December 31, 2014, options to purchase approximately 1.6 million shares of common stock with an exercise price greater than the average fair market value of the Company’s stock of $10.46 per share were not included in the calculation because the effect would have been anti-dilutive.

For the year ended December 31, 2013, options to purchase approximately 979,521 shares of common stock with an exercise price greater than the average fair market value of the Company’s stock of $11.72 per share were not included in the calculation because the effect would have been anti-dilutive.