NET INCOME PER SHARE

9 Months Ended

Sep. 28, 2013

NET INCOME PER SHARE

NET INCOME PER SHARE

NOTE 11      NET INCOME PER SHARE

The following table sets forth the computation of basic and diluted net income per share:

	Three Months Ended				Nine Months Ended
	September 28,		September 29,		September 28,		September 29,
(In thousands, except per share data)	2013		2012		2013		2012
Net income attributable to Newport Corporation	$	437	$	7,636	$	5,845	$	23,382
Shares:
Weighted average shares outstanding - basic	39,121		38,264		38,935		38,072
Dilutive potential common shares, using treasury stock method	536		381		491		753
Weighted average shares outstanding - diluted	39,657		38,645		39,426		38,825
Net income per share attributable to Newport Corporation:
Basic	$	0.01	$	0.20	$	0.15	$	0.61
Diluted	$	0.01	$	0.20	$	0.15	$	0.60

For the three and nine months ended September 28, 2013, an aggregate of 1.5 million stock options and stock appreciation rights, and for the three and nine months ended September 29, 2012, an aggregate of 1.0 million stock options and stock appreciation rights, were excluded from the computations of diluted net income per share, as their inclusion would have been antidilutive.  For the three and nine months ended September 28, 2013, 0.7 million performance-based restricted stock units, and for the three and nine months ended September 29, 2012, 0.4 million performance-based restricted stock units, were excluded from the computations of diluted net income per share, as the performance criteria for their vesting had not been met as of the end of such periods.  For the three and nine months ended September 28, 2013, an additional eight thousand restricted stock units, and for the three and nine months ended September 29, 2012, an additional 0.2 million restricted stock units, 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.