Note 7 - Net Income Per Share

9 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

7. NET INCOME PER SHARE

Basic net income per share is computed by dividing net income by weighted average number of common shares outstanding for the period (excluding outstanding stock options and shares subject to repurchase). Diluted net income 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. 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 per share (in thousands except per share amount): 

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
Numerator:
Net income	$	1,761	$	4,824	$	12,711	$	14,107
Denominator:
Basic weighted average common shares outstanding		30,876		30,000		30,648		29,668
Dilutive effect of equity incentive plans		1,203		1,623		1,327		1,530
Diluted weighted average common shares outstanding		32,079		31,623		31,975		31,198
Net income per share:
Basic	$	0.06	$	0.16	$	0.41	$	0.48
Diluted	$	0.05	$	0.15	$	0.40	$	0.45

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
Outstanding options		34		60		25		48
Nonvested restricted stock units		—		—		—		1
Employee Stock Purchase Plan		30		—		40		—
Total		64		60		65		49