BASIC AND DILUTED NET INCOME PER SHARE

3 Months Ended

Mar. 31, 2012

BASIC AND DILUTED NET INCOME PER SHARE

BASIC AND DILUTED NET INCOME PER SHARE

NOTE 9. BASIC AND DILUTED NET INCOME PER SHARE

        Basic net income per share is calculated by dividing the net income by the weighted-average number of common shares outstanding for the period, without consideration of potential common shares. Diluted net income per share is computed by dividing the net income, as adjusted for the impact of assuming payment of deferred acquisition consideration in stock, by the weighted-average number of common shares outstanding for the period and dilutive potential common shares for the period determined using the treasury-stock method. For purposes of this calculation, options and warrants to purchase stock as well deferred acquisition consideration that may be paid in stock are considered to be potential common shares and are only included in the calculation of diluted net income per share when their effect is dilutive.

        The following table is a reconciliation of the denominator used in the calculation of basic and diluted earnings per share (in thousands):

	Three months ended, March 31,
	2012		2011
Weighted-average common shares outstanding used in calculation of basic earnings per share		93,072		60,364
Dilutive stock options		647		662
Shares potentially issuable as deferred acquisition consideration		10,269		—
Weighted-average common shares outstanding used in calculation of diluted earnings per share		103,988		61,206
Weighted-average outstanding stock options and warrants not included in diluted net income per share calculation as they had an antidilutive effect		12,113		8,708

        In the calculation of diluted earnings per share for the three months ended March 31, 2012, the numerator is comprised of the net income for the period plus approximately $136,000, representing the change in value of the deferred acquisition consideration payable for the period, which was recorded as general and administrative expenses, as the diluted calculation assumes the shares potentially issuable as deferred acquisition consideration would be outstanding from the date of the acquisition of ATL.