Net Income Per Share

9 Months Ended

Oct. 01, 2011

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Net Income Per Share:

Net income per share is computed based on the weighted average number of shares of common stock and potentially dilutive securities assumed to be outstanding during the period using the treasury stock method. Potentially dilutive securities consist of stock options, restricted stock units (“RSUs”) and employee stock purchase plan (“ESPP”) shares.

A reconciliation of basic and diluted Net income per share is presented below (in thousands, except per share data):

	Three Months Ended				Nine Months Ended
	October 1, 2011		October 2, 2010		October 1, 2011		October 2, 2010
Net income	$	13,337	$	15,368	$	37,287	$	43,193
Shares used in basic Net income per share	117,926		117,257		117,990		116,332
Dilutive effect of stock options, RSUs and ESPP shares	2,701		3,795		3,353		3,292
Shares used in diluted Net income per share	120,627		121,052		121,343		119,624
Basic Net income per share	$	0.11	$	0.13	$	0.32	$	0.37
Diluted Net income per share	$	0.11	$	0.13	$	0.31	$	0.36

The computation of Diluted Net income per share for the three and nine months ended October 1, 2011, excludes the effects of stock options, RSUs and ESPP shares aggregating 4.4 million and 3.9 million shares, respectively, as they are antidilutive. The computation of diluted net income per share for the three and nine months ended October 2, 2010, excludes the effects of stock options, RSUs and ESPP shares aggregating 2.0 million and 3.1 million shares, respectively, as they are antidilutive. Stock options, RSUs and ESPP shares are considered antidilutive when the aggregate of exercise price, unrecognized stock-based compensation expense and excess tax benefit are greater than the average market price for our common stock during the period or when the Company is in a net loss position. Stock options and RSUs that are antidilutive in the third quarter of fiscal 2011 could become dilutive in the future.