Net Income per Common Share

3 Months Ended

Mar. 31, 2012

Net Income per Common Share

Net Income per Common Share

NOTE B—Net Income per Common Share

        The following tables reconcile income (numerator) and shares (denominator) used in the computations of net income per common share (in thousands, except per share data):

	Three Months Ended March 31,
	2011		2012
Numerator:
Net income	$	34,298	$	20,790
Denominator:
Weighted average number of common shares outstanding—basic		33,051		27,199
Common stock equivalents—stock options		493		432
Common stock equivalents—restricted stock awards		15		13
Common stock equivalents—restricted stock units		97		102
Common stock equivalents—employee stock purchase plan		—		1
Weighted average number of common shares outstanding—diluted		33,656		27,747
Net income per common share—basic	$	1.04	$	0.76
Net income per common share—diluted	$	1.02	$	0.75

        The weighted average number of common shares outstanding for the three months ended March 31, 2011 and 2012 were calculated using outstanding shares of the Company's common stock. Common stock equivalents included in the calculation of diluted weighted average common shares outstanding for the three months ended March 31, 2011 and 2012 represent stock options to purchase shares of the Company's common stock, restricted stock awards and restricted stock units, and stock purchased under the Employee Stock Purchase Plan.

        The Company had additional potential dilutive securities outstanding representing 1.3 million and 1.6 million options for the three months ended March 31, 2011 and 2012, respectively, that were not included in the computation of dilutive securities because they were anti-dilutive for such periods. Had these shares not been anti-dilutive, all of these shares would not have been included in the net income per common share calculation as the Company uses the treasury stock method of calculating diluted shares.