INCOME PER SHARE

Basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted net income per share is computed by dividing net income by the weighted-average number of common shares outstanding, plus the dilutive effects of stock options and warrants.

Potentially dilutive common shares are determined by applying the treasury stock method to the assumed exercise of outstanding stock options.

A reconciliation of the numerator and denominator used in the calculation of basic and diluted net income per share is as follows ($ and share amounts in 000's, except per share amounts):



	Three Months Ended		Six Months Ended
	June 30, 2011	June 30, 2010	June 30, 2011	June 30, 2010
Numerator:
Net income	14,494	6,869	28,081	11,087

Denominator:
Basic shares:
Weighted-average common shares outstanding - basic	152,267	136,990	151,293	135,684

Diluted shares:
Weighted-average common shares outstanding - basic	152,267	136,990	151,293	135,684
Effect of potentially dilutive securities:
Employee stock options	11,620	14,114	12,100	15,010
Warrants to purchase common stock	—	170	—	172
Weighted-average shares used to compute diluted net income per share	163,887	151,274	163,393	150,866
Net income per share:
Basic	0.10	0.05	0.19	0.08
Diluted	0.09	0.05	0.17	0.07

The following outstanding options were excluded from the computation of diluted net income per common share applicable to common stockholders for the periods presented as their effect would have been antidilutive (in 000's):



	Three Months Ended		Six Months Ended
	June 30, 2011	June 30, 2010	June 30, 2011	June 30, 2010
Options to purchase common stock	3,571	2,788	2,598	2,120