NET LOSS PER SHARE

12 Months Ended

Dec. 31, 2011

NET LOSS PER SHARE [Abstract]

NET LOSS PER SHARE

NOTE 8-NET LOSS PER SHARE

Basic net loss per share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the year. Diluted net income per share is calculated by using the weighted-average number of common shares outstanding during the year increased to include the number of additional shares of common stock that would have been outstanding if the dilutive potential shares of common stock had been issued. The dilutive effect of outstanding options, Employee Stock Purchase Plan shares and restricted stock units is reflected in diluted net income per share by application of the treasury stock method, which includes consideration of stock-based compensation.

For years presented with a net loss, diluted net loss per common share is the same as basic net loss per common share, as the effect of the potential common stock equivalents is anti-dilutive and as such is excluded from the calculations of the diluted net loss per share.

The following table sets forth the computation of basic and diluted net loss and the weighted average number of shares used in computing basic and diluted net loss per share (in thousands):

	Year Ended December 31,
	2011			2010			2009
Numerator:
Net loss-basic and diluted	$	(10,061	)	$	(10,518	)	$	(17,679	)
Denominator:
Weighted-average number of common shares outstanding used in computing basic net loss per share		13,807			13,540			13,279
Dilutive potential common shares used in computing diluted net loss per share		-			-			-
Total weighted-average number of shares used in computing diluted net loss per share		13,807			13,540			13,279

Anti-dilutive Securities

The following number of weighted shares outstanding, prior to the application of the treasury stock method, were excluded from the computation of diluted net loss per common share for the years presented because including them would have had an anti-dilutive effect (in thousands):

	Year Ended December 31,
	2011		2010		2009
Options to purchase common stock		3,667		3,187		2,746
Restricted stock units		61		48		5
Employee stock purchase plan shares		70		66		84
Total		3,798		3,301		2,835