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Computation of Earnings per Share
 6 Months Ended
Jun. 30, 2012
Earnings Per Share [Abstract]  
Computation of Earnings per Share
D)
Computation of Earnings per Share. Basic earnings per share is computed by dividing net income or loss by the weighted average number of common shares outstanding. Diluted earnings per share is computed by dividing net income or loss by the weighted average number of common shares outstanding plus additional common shares that would have been outstanding if dilutive potential common shares had been issued. For the purposes of this calculation, stock options are considered common stock equivalents in periods in which they have a dilutive effect. Stock options that are anti-dilutive are excluded from the calculation.
 
Net income per share is calculated as follows (in thousands, except per share data):
 
Three Months Ended
June 30,
Six Months Ended
June 30,
2012
2011
2012
2011
Net income (loss)
 $ 54,926 ($ 267 ) $ 56,044 $ 323
Weighted-average common shares outstanding
 21,757 20,700 21,241 20,461
Additional dilutive common stock equivalents
 342 - 342 360
Diluted shares outstanding
 22,099 20,700 21,583 20,821
Net income (loss) per share – basic
 $ 2.52 ($ 0.01 ) $ 2.64 $ 0.02
Net income (loss) per share – diluted
 $ 2.49 ($ 0.01 ) $ 2.60 $ 0.02
 
For the three month period ended June 30, 2011 potential common stock equivalents of 286,803 were not included in the per share calculation for diluted EPS, because we had a net loss and the effect of their inclusion would be anti-dilutive.
 
For the three month periods ended June 30, 2012 and 2011, options to purchase 826,004 and 2,927,451 shares of common stock, respectively, were outstanding, but were not included in the computation of diluted EPS because the options’ exercise prices were greater than the average market price of the common stock and thus would be anti-dilutive. For the six month periods ended June 30, 2012 and 2011, options to purchase 1,034,754 and 2,322,772 shares of common stock, respectively, were outstanding, but were not included in the computation of diluted EPS because the options’ exercise prices were greater than the average market price of the common stock and thus would be anti-dilutive.