Net Income Per Share

9 Months Ended

Sep. 30, 2021

12. NET INCOME PER SHARE:

Net income per basic share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Net income per diluted share is computed by dividing net income by the weighted average number of common and common equivalent shares outstanding during the period. Common equivalent shares consist of common shares to be issued upon exercise of stock options, vesting of restricted stock units, vesting of restricted shares and from purchases of shares under our Employee Stock Purchase Plan, as calculated using the treasury stock method. Common equivalent shares are excluded from the calculation of net income per diluted share if their effect is anti-dilutive. The components of net income per basic and diluted share were as follows:

(In thousands except per share amounts)	Net Income		Weighted Average Shares Outstanding	Per Share Amount
Three Months Ended September 30, 2021
Basic	$	4,798	7,324	$	0.66
Dilutive effect of common equivalent shares	—		256	(0.03		)
Dilutive	$	4,798	7,580	$	0.63

(In thousands except per share amounts)	Net Income		Weighted Average Shares Outstanding	Per Share Amount
Three Months Ended September 30, 2020
Basic	$	1,799	7,240	$	0.25
Dilutive effect of common equivalent shares	—		279	(0.01		)
Dilutive	$	1,799	7,519	$	0.24

(In thousands except per share amounts)	Net Income		Weighted Average Shares Outstanding	Per Share Amount
Nine Months Ended September 30, 2021
Basic	$	9,348	7,305	$	1.28
Dilutive effect of common equivalent shares	—		215	(0.04		)
Dilutive	$	9,348	7,520	$	1.24

(In thousands except per share amounts)	Net Income		Weighted Average Shares Outstanding	Per Share Amount
Nine Months Ended September 30, 2020
Basic	$	4,276	7,198	$	0.59
Dilutive effect of common equivalent shares	—		247	(0.02		)
Dilutive	$	4,276	7,445	$	0.57

Potentially dilutive shares consist of stock options, restricted stock units, restricted shares and purchases of shares under our Employee Stock Purchase Plan. Potentially dilutive shares excluded from the calculations of net income per diluted share due to their anti-dilutive effect were as follows: 9,000 shares in the three months ended September 30, 2021; 51,000 shares in the nine months ended September 30, 2021; 11,000 shares in the three months ended September 30, 2020; and 63,000 shares in the nine months ended September 30, 2020.