Net Income Per Share

Basic net income per share is computed by dividing net income by the weighted average common shares outstanding for the period. Diluted net income per share gives effect to all potentially dilutive common shares outstanding during the period, including contingently issuable shares and certain stock options, calculated using the treasury stock method. A reconciliation of the share denominator of the basic and diluted net income per share computations is as follows (in thousands):



	Three Months Ended		Nine Months Ended
	October 1, 2011	October 2, 2010	October 1, 2011	October 2, 2010
Weighted average common shares outstanding used in basic net income per share calculation	22,875	21,978	22,715	21,729
Potential dilutive common stock equivalents, using treasury stock method	651	1,190	774	1,161
Shares used in diluted net income per share computation	23,526	23,168	23,489	22,890

For the three and nine month periods ended October 1, 2011 and October 2, 2010, the Company had securities outstanding which could potentially dilute basic earnings per share in the future, which were excluded from the computation of diluted net loss per share in the periods presented as their impact would have been anti-dilutive. Weighted average common share equivalents, consisting of stock options excluded from the calculation of diluted net loss per share were 0.6 million for both the three and nine month periods ended October 1, 2011, respectively, and 0.8 million and 0.6 million in the three and nine month periods ended October 2, 2010, respectively.