Net Income Per Share

9 Months Ended

Jun. 30, 2011

Net Income Per Share

Net Income Per Share

5.  Net Income Per Share

Basic net income per share is computed by dividing the net income for the period by the weighted average number of shares of common stock outstanding during the period.  Diluted net income per share is computed by dividing the net income for the period by the weighted average number of shares of common stock and potential common stock, if dilutive, outstanding during the period.  Potential common stock includes incremental shares of common stock issuable upon the exercise of stock options, calculated using the treasury stock method.  For periods in which the Company incurs a net loss, diluted net loss per share is the same as basic net loss per share because the inclusion of these common stock equivalents would be anti-dilutive.

The following table sets forth the computation of basic and diluted net income per share as well as the weighted average potential common stock excluded from the calculation of net income per share because their inclusion would be anti-dilutive (in thousands, except per share data):

	Three months ended June 30,				Nine months ended June 30,
	2011		2010		2011		2010
Numerator:
Net income	$	1,885	$	672	$	4,714	$	1,106
Denominator:
Shares used in computing basic net income per share	42,951		42,555		42,901		42,210
Common stock equivalents from employee stock options	959		2,814		1,171		1,712
Shares used in computing diluted net income per share	43,910		45,369		44,072		43,922
Net income per share:
Basic	$	0.04	$	0.02	$	0.11	$	0.03
Diluted	$	0.04	$	0.01	$	0.11	$	0.03
Anti-dilutive potential common stock equivalents excluded from the calculation of diluted net income per share:
Options to purchase common stock	4,587		974		4,174		3,822