v2.3.0.15
Net Income Per Common Share
3 Months Ended
Sep. 30, 2011
Net Income Per Common Share [Abstract] 
Net Income Per Common Share

Note 4. Net Income Per Common Share

The Company's restricted share awards subject to repurchase and settled in shares of common stock upon vesting have the nonforfeitable right to receive dividends on an equal basis with common stock and therefore are considered participating securities that must be included in the calculation of net income per share using the two-class method. Under the two-class method, basic and diluted net income per common share are determined by calculating net income per share for common stock and participating securities based on participation rights in undistributed earnings. Diluted net income per common share also considers the dilutive effect of in-the-money stock options, calculated using the treasury stock method. Under the treasury stock method, the amount of assumed proceeds from unexercised stock options includes the amount of compensation cost attributable to future services not yet recognized, assumed proceeds from the exercise of the options, and the incremental income tax benefit or liability as if the options were exercised during the period.

 

The computation of basic and diluted net income per common share using the two-class method is as follows (in thousands, except per share amounts):

 

     Three Months  Ended
September 30,		  
     2011     2010  

Basic net income per common share calculation

    

Net income

    $ 8,492      $ 7,217   

Less: Undistributed earnings allocated to participating securities

      (97 )      (149 ) 
  

 

 

    

 

 

  

Net income attributable to common shares—basic

    $ 8,395      $ 7,068   
  

 

 

    

 

 

  

Weighted-average number of common shares used to compute basic net income per common share

      40,356        37,224   
  

 

 

    

 

 

  

Basic net income per common share

    $ 0.21      $ 0.19   
  

 

 

    

 

 

  

Diluted net income per common share calculation

    

Net income

    $ 8,492      $ 7,217   

Less: Undistributed earnings allocated to participating securities

      (91 )      (134 ) 
  

 

 

    

 

 

  

Net income attributable to common shares—diluted

    $ 8,401      $ 7,083   
  

 

 

    

 

 

  

Weighted-average number of common shares used to compute basic net income per common share

      40,356        37,224   

Dilutive effect of options to purchase common stock

      3,039        4,207   
  

 

 

    

 

 

  

Weighted-average number of common shares used to compute diluted net income per common share

      43,395        41,431   
  

 

 

    

 

 

  

Diluted net income per common share

    $ 0.19      $ 0.17   
  

 

 

    

 

 

  

For the three months ended September 30, 2011 and 2010, the Company had stock options outstanding that could potentially dilute basic earnings per common share in the future, but were excluded from the computation of diluted net income per common share in the periods presented, as their effect would have been anti-dilutive. The shares of common stock issuable upon exercise of such anti-dilutive outstanding stock options were 2,877,000 and 2,925,000 for the three months ended September 30, 2011 and 2010, respectively.