A summary of the earnings per share calculation is as follows (in thousands, except per share amounts):



	Year Ended December 31,
	2011		2010		2009
Basic earnings per share:
Net income	$	34,291	$	49,464	$	23,269
Weighted-average common shares	28,609		27,837		26,920
Basic earnings per share	$	1.20	$	1.78	$	0.86
Diluted earnings per share (1):
Net income	$	34,291	$	49,464	$	23,269
Weighted-average common shares	28,609		27,837		26,920
Effect of dilutive securities:
Employee stock plans	1,355		1,719		1,377
Diluted weighted-average common shares	29,964		29,556		28,297
Diluted earnings per share	$	1.14	$	1.67	$	0.82

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(1)

The Company includes the shares underlying performance-based awards in the calculation of diluted earnings per share when they become contingently issuable per ASC 260-10, Earnings per Share and excludes such shares when they are not contingently issuable. The Company has excluded all performance-based awards underlying the 2011 awards in the 2011 calculation as those shares were not contingently issuable as of the end of the period, and has included all performance-based awards underlying the 2010 and 2009 awards in the 2010 and 2009 calculation, respectively, as those shares were contingently issuable upon the satisfaction of the annual targets consisting of net revenue and non-GAAP operating earnings as of the end of the period.