Net Income Per Share

6 Months Ended

Jun. 30, 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. Since their impact is anti-dilutive, the total number of shares excluded from the calculations of diluted net income per share for the six months ended June 30, 2011 and 2010 were 2,085,050 and 1,866,682, respectively.

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

	Three Months EndedJune 30.				Six Months EndedJune 30.
	2011		2010		2011		2010
Basic:
Net income	$	2,587	$	1,965	$	3,257	$	2,944
Weighted average shares outstanding - basic	33,003		32,567		33,093		32,388
Net income per share - basic	$	0.08	$	0.06	$	0.10	$	0.09
Diluted:
Net income	$	2,587	$	1,965	$	3,257	$	2,944
Weighted average shares outstanding - basic	33,003		32,567		33,093		32,388
Add: Dilutive effect of employee stock plans	978		885		946		915
Weighted average shares outstanding - diluted	33,981		33,452		34,039		33,303
Net income per share - diluted	$	0.08	$	0.06	$	0.10	$	0.09