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Net Income Per Share
6 Months Ended
Jun. 30, 2014
Earnings Per Share [Abstract]  
Net Income Per Share
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, we excluded 353,422 and 366,021 shares, respectively, from the calculations of diluted net income per share for the three and six months ended June 30, 2014 and 1,346,561 and 1,581,335 shares, respectively, from the same calculations for the three and six months ended June 30, 2013.
 
The calculation of basic and diluted net income per share is as follows (in thousands, except per share amounts):
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2014
 
2013
 
2014
 
2013
Basic:
 

 
 

 
 
 
 
Net income
$
7,789

 
$
6,016

 
$
13,983

 
$
9,401

Weighted average shares outstanding — basic
35,661

 
34,450

 
35,451

 
34,177

Net income per share — basic
$
0.22

 
$
0.17

 
$
0.39

 
$
0.28

Diluted:
 

 


 
 
 
 
Net income
$
7,789

 
$
6,016

 
$
13,983

 
$
9,401

Weighted average shares outstanding — basic
35,661

 
34,450

 
35,451

 
34,177

Add: Dilutive effect of employee stock plans
957

 
924

 
1,027

 
922

Weighted average shares outstanding — diluted
36,618

 
35,374

 
$
36,478

 
35,099

Net income per share — diluted
$
0.21

 
$
0.17

 
$
0.38

 
$
0.27