8. INCOME PER SHARE

Basic net income per common share is presented in conformity with the two-class method required for participating securities. Upon completion of the IPO in March 2012, all outstanding shares of preferred stock were converted to common stock. As a result, common stock is the only outstanding capital stock since the IPO.

Basic net income per share is computed using the weighted-average number of common shares outstanding during the period. Diluted net income per share is computed using the weighted-average number of common shares and, if dilutive, potential common shares outstanding during the period. The Company’s potential dilutive common shares consist of common shares issuable upon the exercise of warrants, stock options and vesting of restricted stock units. The dilutive effect of outstanding stock options is reflected in diluted earnings per share by application of the treasury stock method.

The following table sets forth the computation for basic and diluted net income per share of common stock (in thousands, except per share data):


	Three Months Ended
	December 28, 2012		December 30, 2011
Numerator:
Net income	$	6,108	$	22,042
Accretion to redemption value of redeemable convertible preferred stock		—		(1,415	)
Participating preferred stock dividends		—		(19,777	)
Participating restricted stock dividends		—		(99	)
		—		—

Net income attributable to common stockholders	$	6,108	$	751

Denominator:
Weighted average common shares outstanding-basic		45,511		1,747
Dilutive effect of options and warrants		1,359		2,006

Weighted average common shares outstanding-diluted		46,870		3,753

Common stock earnings per share:
Basic	$	0.13	$	0.43

Diluted	$	0.13	$	0.20