Note 6 - Net Income Per Share

6 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Earnings Per Share [Text Block]

6. 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 June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Numerator:
Net income	$	2,214	$	2,149	$	4,276	$	8,116
Denominator:
Basic weighted average common shares outstanding		31,276		31,522		31,222		31,429
Dilutive effect of equity incentive plans		747		878		650		916
Diluted weighted average common shares outstanding		32,023		32,400		31,872		32,345
Net income per share:
Basic	$	0.07	$	0.07	$	0.14	$	0.26
Diluted	$	0.07	$	0.07	$	0.13	$	0.25

 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 June 30,				Six Months Ended June 30,
	201 6		2015		2016		2015
Outstanding options		230		58		264		52
Nonvested restricted stock units		348		62		798		64
Employee Stock Purchase Plan		—		215		230		239
Total		578		335		1,292		355