|
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 nine months ended September 30, 2011 and 2010 were 2,089,739 and 2,019,161, respectively.
The calculation of basic and diluted net income per share is as follows (in thousands, except per share amounts):
|
|
|
Three Months Ended
September 30. |
|
Nine Months Ended
September 30. |
|
|
|
|
2011 |
|
2010 |
|
2011 |
|
2010 |
|
|
Basic: |
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
2,994 |
|
$ |
1,276 |
|
$ |
6,251 |
|
$ |
4,220 |
|
|
Weighted average shares outstanding — basic |
|
33,209 |
|
32,822 |
|
33,132 |
|
32,534 |
|
|
Net income per share — basic |
|
$ |
0.09 |
|
$ |
0.04 |
|
$ |
0.19 |
|
$ |
0.13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted: |
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
2,994 |
|
$ |
1,276 |
|
$ |
6,251 |
|
$ |
4,220 |
|
|
Weighted average shares outstanding — basic |
|
33,209 |
|
32,822 |
|
33,132 |
|
32,534 |
|
|
Add: Dilutive effect of employee stock plans |
|
1,010 |
|
718 |
|
968 |
|
849 |
|
|
Weighted average shares outstanding — diluted |
|
34,219 |
|
33,540 |
|
34,100 |
|
33,383 |
|
|
Net income per share — diluted |
|
$ |
0.09 |
|
$ |
0.04 |
|
$ |
0.18 |
|
$ |
0.13 |
| |