Net Income Per Common Share

9 Months Ended

Sep. 30, 2013

Net Income Per Common Share

Net Income Per Common Share

Note D — Net Income Per Common Share

Basic net income per common share (“Basic EPS”) excludes dilution and is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per common share (“Diluted EPS”) reflects the potential dilution that could occur if stock options or other contracts to issue common stock were exercised or converted into common stock. The computation of Diluted EPS does not assume exercise or conversion of securities that would have an anti-dilutive effect on net income per common share.  During the three months ended September 30, 2013 and 2012, options to acquire 3,164,000 and 3,945,000 shares, respectively, were excluded from the computation of Diluted EPS as their impact was anti-dilutive. During the nine months ended September 30, 2013 and 2012, options to acquire 3,300,000 and 3,963,000 shares, respectively, were excluded from the computation of Diluted EPS as their impact was anti-dilutive.

The calculation of the weighted average number of common shares outstanding for Basic EPS and Diluted EPS for the periods indicated (in thousands, except per share data) is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
	(Unaudited)				(Unaudited)
Numerator
Net Income	$	26,394	$	20,933	$	50,348	$	37,211
Denominator
Weighted average number of common shares outstanding	51,881		51,241		51,841		51,022
Effect of outstanding share-based awards	729		912		710		586
Weighted average number of shares for diluted net income per common share	52,610		52,153		52,551		51,608
Basic earnings per share	$	0.51	$	0.41	$	0.97	$	0.73
Diluted earnings per share	$	0.50	$	0.40	$	0.96	$	0.72