BASIC AND DILUTED NET INCOME PER SHARE

9 Months Ended

Sep. 30, 2012

BASIC AND DILUTED NET INCOME PER SHARE

BASIC AND DILUTED NET INCOME PER SHARE

NOTE 10. 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 September 30,				Nine months ended September 30,
	2012		2011		2012		2011
Weighted-average common shares outstanding used in calculation of basic earnings per share		93,316		86,116		93,175		69,054
Dilutive stock options		—		—		878		755
Shares potentially issuable as deferred acquisition consideration		—		—		8,282		—
Weighted-average common shares outstanding used in calculation of diluted earnings per share		93,316		86,116		102,335		69,809
Weighted-average outstanding stock options and warrants not included in diluted net income per share calculation as they had an antidilutive effect		15,682		14,877		12,114		9,764

        In the calculation of diluted earnings per share for the nine month period ended September 30, 2012, the numerator is comprised of the net income for the period adjusted by the change in value of the deferred acquisition consideration payable for the period, as the diluted calculation assumes the shares potentially issuable as deferred acquisition consideration would be outstanding from the date of the acquisition of ATL. The change in deferred acquisition consideration, recorded in general and administrative expenses, was $206,000 for the nine months ended September 30, 2012.