Net Income Per Share

12 Months Ended

Dec. 31, 2011

Net Income Per Share

Net Income Per Share

Note 3. 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. Potential common stock which is anti-dilutive is excluded. Since their impact is anti-dilutive, the total number of shares excluded from the calculations of diluted net income per share for the years ended December 31, 2011, December 31, 2010 and December 31, 2009 were 1,833,574 shares, 2,005,642 shares and 4,061,857 shares, respectively.

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

	Years Ended December 31,
	2011		2010		2009
Basic:
Net income	$	10,389	$	4,892	$	444
Weighted average shares outstanding—basic		33,123		32,651		31,691
Net income per share—basic	$	0.31	$	0.15	$	0.01
Diluted:
Net income	$	10,389	$	4,892	$	444
Weighted average shares outstanding—basic		33,123		32,651		31,691
Dilutive effect of employee stock plans		980		862		372
Weighted average shares outstanding—diluted		34,103		33,513		32,063
Net income per share—diluted	$	0.30	$	0.15	$	0.01