NET INCOME (LOSS) PER SHARE

12 Months Ended

Dec. 29, 2012

NET INCOME (LOSS) PER SHARE

NET INCOME (LOSS) PER SHARE

NOTE 9        NET INCOME (LOSS) PER SHARE

The following table sets forth the numerator and denominator used in the computation of net income (loss) per share:

	Year Ended
	December 29,			December 31,		January 1,
(In thousands, except per share data)	2012			2011		2011
Net income (loss) attributable to Newport Corporation	$	(89,423	)	$	79,708	$	41,113
Shares:
Weighted average shares outstanding - basic	38,133			37,407		36,647
Dilutive potential common shares, using treasury stock method	—			1,266		1,079
Weighted average shares outstanding - diluted	38,133			38,673		37,726
Net income (loss) per share attributable to Newport Corporation:
Basic	$	(2.35	)	$	2.13	$	1.12
Diluted	$	(2.35	)	$	2.06	$	1.09

For 2012, 2011 and 2010, 1.7 million, 1.1 million and 1.2 million stock options and/or stock appreciation rights, respectively, were excluded from the computations of diluted net income per share, as their exercise prices (or base values) exceeded the average market price of the Company’s common stock during such periods, and their inclusion would have been antidilutive.  For 2012 and 2011, 0.6 million and 0.3 million restricted stock units, respectively, were excluded from the computations of diluted net income per share, as the amount of unrecognized future compensation expense associated with these restricted stock units would have resulted in assumed proceeds in excess of the amount required to repurchase the underlying shares under the treasury stock method, and, therefore, their inclusion would have been antidilutive.  In addition, for 2010, 0.4 million restricted stock units representing shares that were issuable contingent upon the achievement of performance conditions were excluded from the computation of diluted net income per share, as the performance criteria had not been met.  For 2012, an additional 0.7 million common stock equivalents have been excluded from the denominator for purposes of computing diluted net loss per share, as their inclusion would be antidilutive due to the Company incurring a net loss.