Net Income Per Share

9 Months Ended

Sep. 30, 2013

Net Income Per Share

Net Income Per Share

14.  Net Income Per Share

Basic net income per share is computed by dividing the net income applicable to common stockholders for the period by the weighted-average number of common shares outstanding.  Diluted net income per share is computed by giving effect to all potential weighted-average dilutive common stock, including stock options, restricted stock, restricted stock units and convertible senior notes.  The dilutive effect of outstanding stock options, restricted stock and restricted stock units, and the convertible senior notes is reflected in diluted net income per share by application of the treasury stock method.  Shares associated with stock options, restricted stock, restricted stock units and convertible senior notes are not included to the extent they are antidilutive.

The following table sets forth the computation of basic and diluted net income per share applicable to common stockholders for the periods indicated (in thousands, except per share amounts):

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2013		2012		2013		2012
Numerator:
Net income	$	138	$	1,785	$	504	$	4,037
Convertible preferred stock dividend and related accretion	—		—		—		(942		)
Net income applicable to common stockholders	$	138	$	1,785	$	504	$	3,095
Denominator:
Basic weighted-average shares outstanding	39,061		38,798		39,215		38,661
Add: dilutive effect of options and restricted stock	2,421		1,097		1,698		999
Fully diluted weighted-average shares outstanding	41,482		39,895		40,913		39,660
Basic net income per share applicable to common stockholders	$	0.00	$	0.05	$	0.01	$	0.08
Diluted net income per share applicable to common stockholders	$	0.00	$	0.04	$	0.01	$	0.08

Because their effect would be anti-dilutive, the denominator in the above computation of diluted income per share excludes “out-of-the-money” stock options of 794,721 and 951,621, for the three and nine months ended September 30, 2013, respectively, and 3,803,142 and 3,815,642 for the three and nine months ended September 30, 2012, respectively.

The Notes did not have a dilutive effect in the above calculation of diluted income per share for the three and nine months ended September 30, 2013.