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EARNINGS PER COMMON SHARE
3 Months Ended
Mar. 31, 2013
EARNINGS PER COMMON SHARE [Abstract]  
EARNINGS PER COMMON SHARE
NOTE 10 — EARNINGS PER COMMON SHARE

Basic net income per common share is based upon the weighted average common shares outstanding during the period. Diluted net income per common share is based upon the weighted average number of common shares outstanding, including the dilutive effect, if any, of stock options and warrants and the conversion feature of convertible notes using the treasury stock method.
 
The Company's potentially dilutive shares consist of: (i) vested and unvested stock options that are in-the-money, (ii) unvested restricted stock awards ("RSAs"), (iii) warrants that are in-the-money, and (iv) shares potentially issuable upon conversion of the Notes.  The Company calculates and includes in dilutive securities incremental shares issuable related to the Notes to the extent that the conversion value of each note exceeds $1,000.  

Certain shares that are potentially dilutive in the future have been excluded from the diluted net income per share computation as they would have been anti-dilutive for the period. The number of such shares subject to stock options as of March 31, 2013 and March 31, 2012 was 1,496,000 and 126,000, respectively.  There were no shares subject to warrants that would have been anti-dilutive as of either March 31, 2013 or March 31, 2012.

A reconciliation of the earnings per share data from a basic to a fully diluted basis is detailed below (in thousands, except per share amounts): 

 
 
Three months ended March 31,
 
 
 
2013
  
2012
 
Net income
 
$
10,842
  
$
3,108
 
Net income per share:
        
     Basic
 
$
0.11
  
$
0.03
 
     Diluted
 
$
0.10
  
$
0.03
 
 
        
Shares used in computing net income per share:
        
Weighted average basic shares outstanding
  
95,926
   
95,011
 
Dilutive securities:
        
     Stock options and unvested RSA's
  
4,193
   
4,097
 
     Stock warrants
  
6,589
   
6,502
 
     Shares issuable upon conversion of convertible notes (1)
  
4,843
   
3,559
 
Total dilutive securities
  
15,625
   
14,158
 
 
        
Weighted average diluted shares outstanding
  
111,551
   
109,169
 
 
(1)
Shares issuable upon conversion of convertible notes assumes that that Company would repay the principal of the notes in cash and pay any incremental value in shares of the Company's common stock.