EARNINGS PER COMMON SHARE

9 Months Ended

Sep. 30, 2013

EARNINGS PER COMMON SHARE [Abstract]

EARNINGS PER COMMON SHARE

NOTE 9 — EARNINGS PER COMMON SHARE

Basic net income per common share is based upon the weighted average number of 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 potentially dilutive securities using the treasury stock method.

The Company’s potentially dilutive securities consist of: (i) vested and unvested stock options that are in-the-money, (ii) warrants that are in-the-money, (iii) unvested restricted stock awards (“RSAs”), and (iv) shares issuable on conversion of convertible notes.  Information about the computation of basic and diluted earnings per share is detailed below (in thousands, except per share data): 

	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Consolidated net income	$	12,205	$	13,753	$	35,684	$	26,567
Consolidated net income per share:
Basic	$	0.13	$	0.14	$	0.37	$	0.28
Diluted	$	0.11	$	0.12	$	0.32	$	0.24
Shares used in computing consolidated net income per share:
Weighted average basic shares outstanding		96,238		95,128		96,096		95,078
Dilutive securities:
Stock option and unvested RSAs		4,510		4,460		4,408		4,301
Stock warrants		6,687		6,613		6,635		6,565
Shares issuable upon conversion of convertible notes (1)		6,282		5,187		5,505		4,486
Total dilutive securities		17,479		16,260		16,548		15,352
Weighted average diluted shares outstanding		113,717		111,388		112,644		110,430
Shares subject to stock options excluded from the calculation of net income per share as their effect would have been anti-dilutive		1,110		775		1,335		399

(1) The number of shares issuable upon conversion of the Notes is based on the assumption that the Company would repay the principal of the Notes in cash and pay any incremental value in shares of common stock.