Net Income (Loss) Per Share

3 Months Ended

Mar. 31, 2013

Net Income (Loss) Per Share

Net Income (Loss) Per Share

Note 2.  Net Income (Loss) Per Share

Basic net income (loss) per share is calculated by dividing net income (loss) for the period by the weighted-average number of common shares outstanding for the period without consideration of potential common shares. Diluted net income (loss) per share is calculated by dividing net income (loss) 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 are considered to be potential common shares and are not included in the calculation of diluted net loss per share because their effect is anti-dilutive.

	Three Months Ended
	March 31,
	2013			2012
	(In thousands)
Numerator:
Net income (loss)	$	(883	)	$	777
Denominator:
Weighted-average shares of common stock outstanding used in the calculation of basic net income (loss) per share	30,099			29,910
Effect of dilutive securities:
Options to purchase common stock	—			1,624
Restricted stock units	—			75
Total	—			1,699
Weighted-average shares of common stock outstanding used in the calculation of diluted net income (loss) per share	30,099			31,609
Basic net income (loss) per share	$	(0.03	)	$	0.03
Diluted net income (loss) per share	$	(0.03	)	$	0.02

Options to purchase approximately 1.4 million weighted average shares of the Company’s common stock that were outstanding during the three months ended March 31, 2013 were not included in the computation of diluted net loss per share because their effect was anti-dilutive. Options to purchase approximately 130,000 weighted average shares of the Company’s common stock that were outstanding during the three months ended March 31, 2012 were not included in the computation of diluted net income per share because their effect was anti-dilutive.