Computation Of Net Income Per Share Of Common Stock

6 Months Ended

Jun. 30, 2011

Computation Of Net Income Per Share Of Common Stock

Computation Of Net Income Per Share Of Common Stock

(11) Computation of Net Income Per Share of Common Stock

Basic net income per common share is determined by dividing net income by the basic weighted average number of shares of common stock outstanding. Diluted net income per common share includes the potentially dilutive effect of common shares issued in connection with outstanding stock options using the treasury stock method and the dilutive impact of restricted stock units. Stock options to acquire weighted average common shares of 1,191,000 and 1,138,000 for the three and six months ended June 30, 2011, respectively, and weighted average common shares of 1,100,000 and 1,088,000 for the three and six months ended June 30, 2010, respectively, have been excluded from the computation of diluted weighted average shares outstanding for each respective period as their effect is anti-dilutive. The following table identifies the components of net income per basic and diluted share (in thousands, except for per share data):

	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2011	2010	2011	2010
Shares outstanding at end of period	9,589	9,551	9,589	9,551
Basic weighted average shares outstanding	9,559	9,531	9,526	9,504
Dilutive effect of stock options/restricted stock units	30	77	39	84
Total diluted weighted average shares outstanding	9,589	9,608	9,565	9,588
Net income attributable to Rimage	$1,206	$2,053	$2,704	$2,748
Basic net income per common share	$0.12	$0.22	$0.28	$0.29
Diluted net income per common share	$0.12	$0.22	$0.28	$0.29