Income Per Share

Basic net income per share is based on the weighted average number of common shares outstanding. Diluted net income per share is based on the weighted average number of common shares and common share equivalents outstanding. Common share equivalents included in the computation represent shares issuable upon assumed exercise of outstanding stock options and conversion of unvested restricted stock units except when the effect of their inclusion would be antidilutive.

The following table sets forth the computation of basic and diluted net income per share (in thousands, except per share data):



	Year Ended
	December 30, 2012		January 1, 2012		January 2, 2011
Net income	$	8,392	$	11,350	$	14,142
Weighted average common shares outstanding	13,204		14,182		14,446
Basic net income per share	$	0.64	$	0.80	$	0.98
Dilutive effect of stock options and restricted stock units	223		493		634
Common stock and common stock equivalents	13,427		14,675		15,080
Diluted net income per share	$	0.63	$	0.77	$	0.94

The following is a summary of the securities outstanding during the respective periods that have been excluded from the calculations because the effect on net income per share would have been antidilutive (in thousands):



	Year Ended
	December 30, 2012	January 1, 2012	January 2, 2011
Stock options	1,337	766	595