
	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 three months ended March 31, 2013 and 2012 were 1,865,589 and 2,065,842, respectively.

The calculation of basic and diluted net income per share is as follows (in thousands, except per share amounts):



	Three Months Ended March 31,
	2013		2012
Basic:
Net income	$	3,385	$	2,351
Weighted average shares outstanding — basic	33,900		33,365
Net income per share — basic	$	0.10	$	0.07
Diluted:
Net income	$	3,385	$	2,351
Weighted average shares outstanding — basic	33,900		33,365
Add: Dilutive effect of employee stock plans	920		976
Weighted average shares outstanding — diluted	34,820		34,341
Net income per share — diluted	$	0.10	$	0.07