Net Income Per Share

3 Months Ended

Mar. 31, 2014

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 347,265 and 1,865,589 shares from the calculations of diluted net income per share for the three months ended March 31, 2014 and 2013, respectively.

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

	Three Months Ended March 31,
	2014		2013
Basic:
Net income	$	6,194	$	3,385
Weighted average shares outstanding — basic	35,225		33,900
Net income per share — basic	$	0.18	$	0.10
Diluted:
Net income	$	6,194	$	3,385
Weighted average shares outstanding — basic	35,225		33,900
Add: Dilutive effect of employee stock plans	1,080		920
Weighted average shares outstanding — diluted	36,305		34,820
Net income per share — diluted	$	0.17	$	0.10