NET INCOME (LOSS) PER SHARE

3 Months Ended

Mar. 31, 2013

NET INCOME (LOSS) PER SHARE [Abstract]

NET INCOME (LOSS) PER SHARE

9. NET INCOME (LOSS)PER SHARE

Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period. Diluted net income per share reflects the potential dilution that could occur from common shares issuable upon the exercise of outstanding stock options or warrants and the vesting of RSAs, which are reflected in diluted earnings per share by application of the treasury stock method.  Under the treasury stock method, the amount that the employee must pay for exercising stock options or warrants, the amount of stock-based compensation cost for future services that the Company has not yet recognized, and the amount of tax benefit that would be recorded in additional paid-in capital upon exercise are assumed to be used to repurchase shares.

The following table sets forth the computation of basic and diluted net income (loss) per share and potential shares of common stock that are not included in the diluted net income (loss) per share calculation because their effect is anti-dilutive (in thousands, except per share data):

	Three Months Ended March 31,
	2013			2012
Numerator:
Net income (loss)	$	(6,717	)	$	579
Denominator:
Weighted average common shares - basic		19,931			14,547
Dilutive effect of employee equity incentive plans		—			483
Dilutive effect of warrants		—			34
Weighted average common shares - diluted		19,931			15,064
Net income (loss) per share:
Basic	$	(0.34	)	$	0.04
Diluted	$	(0.34	)	$	0.04
Anti-dilutive securities:
Options and restricted stock		1,107			260
Warrants		—			20
Total anti-dilutive securities		1,107			280