Note 10 - Net Income (Loss) Per Share

3 Months Ended

Mar. 31, 2012

Earnings Per Share [Text Block]

10. NET INCOME (LOSS) PER SHARE

Basic net income (loss) per share is computed by dividing net income (loss) by weighted average number of common shares outstanding for the period (excluding outstanding stock options and shares subject to repurchase). Diluted net income (loss) per share is computed using the weighted-average number of common shares outstanding for the period plus the potential effect of dilutive securities which are convertible into common shares (using the treasury stock method), except in cases in which the effect would be anti-dilutive. There are no dilutive shares included during the three months ended March 31, 2011 due to the net loss for the period. Under the treasury stock method, the amount that the employee must pay for exercising stock options, the amount of compensation cost for future service that the Company has not yet recognized, and the amount of the tax benefits that would be recorded in additional paid-in capital when the award becomes deductible are assumed to be used to repurchase shares.  The following is a reconciliation of the numerators and denominators used in computing basic and diluted net income (loss) per share (in thousands except per share amount):

	Three Months Ended March 31,
	2012		2011
Numerator:
Net income (loss)	$	3,499	$	(758	)
Denominator:
Basic weighted-average shares outstanding		28,384		27,810
Effect of dilutive options and restricted stock		662		—
Diluted weighted average shares outstanding		29,046		27,810
Net income (loss) per share - Basic	$	0.12	$	(0.03	)
Net income (loss) per share - Diluted	$	0.12	$	(0.03	)

The following table sets forth potential shares of common stock that are not included in the diluted net loss per share calculation above because to do so would be anti-dilutive for the periods indicated (in thousands):

	Three Months Ended March 31,
	2012		2011
Outstanding options		1,906		1,091
Nonvested restricted stock units		42		90
Total		1,948		1,181