Note 5 - Net Income per Share and Comprehensive Income

9 Months Ended

Sep. 30, 2011

5. Net Income per Share and Comprehensive Income — Basic net income per share excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted net income per share is calculated using the treasury stock method and reflects the potential dilution that would occur if outstanding securities or other contracts to issue common stock were exercised or converted into common stock. For the three and nine months ended September 30, 2011 and 2010, the Company had securities outstanding, which could potentially dilute basic net income per share in the future, but were excluded from the computation of diluted net income per share in the periods presented, as their effect would have been anti-dilutive. The following table sets forth the computation of basic and diluted net income per share (in thousands, except per share amounts):

	Three months ended September 30,				Nine months ended September 30,
	2011		2010		2011		2010
Numerator:
Net income	$	5,473	$	13,219	$	10,848	$	25,982

Denominator:
Weighted average oustanding shares used to compute basic net income per share		33,594		36,185		34,149		35,968
Effect of dilutive securities		646		1,542		1,126		2,162
Weighted average oustanding shares used to compute diluted net income per share		34,240		37,727		35,275		38,130

Net income per share - basic	$	0.16	$	0.37	$	0.32	$	0.72
Net income per share - diluted	$	0.16	$	0.35	$	0.31	$	0.68

For the three months ended September 30, 2011 and 2010, approximately 5.9 million and 2.8 million common stock equivalents, respectively, were excluded from the calculation of diluted net income per share because their inclusion would have been anti-dilutive. For the nine months ended September 30, 2011 and 2010, approximately 4.8 million and 1.8 million common stock equivalents, respectively, were excluded from the calculation of diluted net income per share because their inclusion would have been anti-dilutive.

The following table sets forth the components of other comprehensive income, net of income tax effects (in thousands):


	Three months ended September 30,						Nine months ended September 30,
	2011			2010			2011			2010
Net income	$	5,473		$	13,219		$	10,848		$	25,982
Other comprehensive income (loss):
Change in value of temporary impairment of auction-rate securities		150			45			290			220
Unrealized gain (loss) on available-for-sale securities		(38	)		(4	)		(36	)		153
Foreign currency translation adjustments		302			612			1,160			716

Comprehensive income	$	5,887		$	13,872		$	12,262		$	27,071

Foreign currency translation adjustments for the quarter and nine months ended September 30, 2011 were primarily from fluctuations in the renminbi.