Net Income Per Share

6 Months Ended

Jun. 30, 2013

Earnings Per Share [Abstract]

Net Income Per Share

Net Income Per Share

Basic net income per share is computed by dividing net income for the period by the weighted average number of shares outstanding during the period, less shares subject to repurchase. Diluted net income per share is computed by dividing net income for the period by the weighted average number of shares, less shares subject to repurchase, plus, if dilutive, potential common stock outstanding during the period. Potential common stock includes the effect of outstanding dilutive stock options, restricted stock awards and restricted stock units computed using the treasury stock method. Since their impact is anti-dilutive, we excluded 1,581,335 and 2,103,021 shares from the calculations of diluted net income per share for the six months ended June 30, 2013 and 2012, respectively.

The calculation of basic and diluted net income per share is as follows (in thousands, except per share amounts):

	Three Months Ended June 30,				Six Months Ended June 30,
	2013		2012		2013		2012
Basic:
Net income	$	6,016	$	1,375	$	9,401	$	3,726
Weighted average shares outstanding — basic	34,450		33,390		34,177		33,377
Net income per share — basic	$	0.17	$	0.04	$	0.28	$	0.11
Diluted:
Net income	$	6,016	$	1,375	$	9,401	$	3,726
Weighted average shares outstanding — basic	34,450		33,390		34,177		33,377
Add: Dilutive effect of employee stock plans	924		926		922		952
Weighted average shares outstanding — diluted	35,374		34,316		35,099		34,329
Net income per share — diluted	$	0.17	$	0.04	$	0.27	$	0.11