Note 6 - Net Income Per Share

6 Months Ended

Jun. 30, 2015

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

6. NET INCOME PER SHARE

Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted net income per share reflects the potential dilution that would occur if outstanding securities or other contracts to issue common stock were exercised or converted into common stock, and calculated using the treasury stock method. 

The Company’s outstanding RSUs contain forfeitable rights to receive dividend equivalents, which are accrued quarterly during the vesting periods of the RSUs and are payable to the employees when the awards vest. Dividend equivalents accrued on the RSUs are forfeited if the employees do not fulfill their service requirement during the vesting periods. Accordingly, these awards are not treated as participating securities in the net income per share calculation. 

The following table sets forth the computation of basic and diluted net income per share (in thousands, except per-share amounts):

	Three Months Ended June 30,				Six Months Ended June 30,
	2015		2014		2015		2014
Numerator:
Net income	$	7,899	$	6,397	$	13,862	$	15,415
Denominator:
Weighted-average outstanding shares used to compute basic net income per share		39,570		38,684		39,337		38,577
Effect of dilutive securities		1,175		924		1,333		986
Weighted-average outstanding shares used to compute diluted net income per share		40,745		39,608		40,670		39,563
Net income per share:
Basic	$	0.20	$	0.17	$	0.35	$	0.40
Diluted	$	0.19	$	0.16	$	0.34	$	0.39

For the three and six months ended June 30, 2015, approximately 8,000 and 16,000 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 three and six months ended June 30, 2014, there were no anti-dilutive common stock equivalents.