Net Income Per Share

9 Months Ended

Sep. 30, 2012

Net Income Per Share

Net Income Per Share

Note 2.  Net Income Per Share

Basic net income per share is calculated by dividing net income for the period by the weighted-average number of common shares outstanding for the period without consideration of potential common shares. Diluted net income per share is calculated by dividing net income by the weighted-average number of common shares outstanding for the period and dilutive potential common shares for the period determined using the treasury-stock method. For purposes of this calculation, options to purchase common stock and restricted stock unit awards which are considered to be potential common shares and are anti-dilutive are not included in the calculation of diluted net income per share because their effect is anti-dilutive.

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2012		2011		2012		2011
	(In thousands)
Numerator:
Net income	$	3,712	$	3,225	$	6,290	$	5,287
Denominator:
Weighted-average shares of common stock outstanding used in the calculation of basic net income per share	30,580		29,491		30,233		29,311
Effect of dilutive securities:
Options to purchase common stock	1,844		1,267		1,758		1,318
Restricted stock units	154		50		104		32
Weighted-average shares of common stock outstanding used in the calculation of diluted net income per share	32,578		30,808		32,095		30,661
Basic net income per share	$	0.12	$	0.11	$	0.21	$	0.18
Diluted net income per share	$	0.11	$	0.10	$	0.20	$	0.17

Options to purchase approximately 87,000 and 116,000 weighted average shares of the Company’s common stock that were outstanding during the three and nine months ended September 30, 2012, respectively, were not included in the computation of diluted net income per share because their effect was anti-dilutive. Options to purchase approximately 156,000 and 147,000 weighted average shares of the Company’s common stock that were outstanding during the three and nine months ended September 30, 2011, respectively, were not included in the computation of diluted net income per share because their effect was anti-dilutive.