Note 5 - Net Income per Share

9 Months Ended

Sep. 30, 2012

Earnings Per Share [Text Block]

5. Net Income per Share — 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, 2012 and 2011, 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,
	2012		2011		2012		2011
Numerator:
Net income	$	5,921	$	5,473	$	15,508	$	10,848
Denominator:
Weighted average outstanding shares used to compute basic net income per share		35,145		33,594		34,677		34,149
Effect of dilutive securities		1,293		646		1,331		1,126
Weighted average outstanding shares used to compute diluted net income per share		36,438		34,240		36,008		35,275
Net income per share - basic	$	0.17	$	0.16	$	0.45	$	0.32
Net income per share - diluted	$	0.16	$	0.16	$	0.43	$	0.31

For the three months ended September 30, 2012 and 2011, approximately 1.0 million and 5.9 million weighted 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, 2012 and 2011, approximately 1.3 million and 4.8 million weighted common stock equivalents, respectively, were excluded from the calculation of diluted net income per share because their inclusion would have been anti-dilutive.