Net Income Per Share

3 Months Ended

Mar. 31, 2014

Earnings Per Share [Abstract]

Net Income Per Share

11. 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
	March 31,
	2014		2013
	(in thousands except per share amounts)
Numerator:
Net income	$	1,864	$	1,687
Denominator:
Shares used in computation of basic net income per share (weighted average common shares outstanding)		28,370		27,424
Dilutive potential common shares:
Restricted Stock and RSUs		316		303
Stock options		696		567
Shares used in computation of diluted net income per share		29,382		28,294
Basic net income per share	$	0.07	$	0.06
Diluted net income per share	$	0.06	$	0.06

For the three months ended March 31, 2014 and 2013, options to purchase approximately 1.4 million and 1.4 million shares of common stock, respectively, with exercise prices greater than the average fair market value of the Company’s stock of $11.21 and $7.84 per share, respectively, were not included in the calculation because the effect would have been anti-dilutive.