4. Computation of Net Income per Common Share

Basic earnings per share ("EPS") is computed by dividing net earnings by the weighted-average number of common shares outstanding for the period. Diluted EPS is computed by dividing the net earnings by the weighted-average number of common shares and dilutive common equivalent shares outstanding during the period, calculated using the treasury stock method. Common equivalent shares include the effect of restricted stock, exercise of stock options and warrants and contingently issuable shares. For the three and six months ended September 30, 2010 and 2009, common equivalent shares of 1.3 million shares and 1.4 million shares, respectively, and 0.9 million shares and 0.8 million shares, respectively, were not included in the calculation of diluted EPS as they were considered anti-dilutive.

The following table reconciles the numerators and denominators of the earnings per share calculation for the three and six months ended September 30, 2010 and 2009 (in thousands, except per share data):

	Three months ended September 30,		Six months ended September 30,
	2010	2009	2010	2009
	(Restated)		(Restated)
Numerator:
Net income	$ 7,839	$ 4,340	$ 17,008	$ 6,132

Denominator:
Weighted-average shares of common stock outstanding	45,694	44,299	45,597	44,080
Weighted-average shares subject to repurchase	(212)	(52)	(234)	(60)

Shares used in per-share calculation ― basic	45,482	44,247	45,363	44,020

Dilutive effect of employee equity incentive plans	735	986	736	902

Shares used in per-share calculation ― diluted	46,217	45,233	46,099	44,922

Net income per share ― basic	$ 0.17	$ 0.10	$ 0.37	$ 0.14

Net income per share ― diluted	$ 0.17	$ 0.10	$ 0.37	$ 0.14