Net 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 RSUs, except when the effect of their inclusion would be antidilutive.

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



	Quarter ended				Year to date ended
	June 30, 2013		July 1, 2012		June 30, 2013		July 1, 2012
Net income	$	2,206	$	1,578	$	3,038	$	1,732
Weighted average common shares outstanding	12,411		13,787		12,447		13,820
Basic net income per share	$	0.18	$	0.11	$	0.24	$	0.13
Dilutive effect of stock options and RSUs	217		109		213		212
Common stock and common stock equivalents	12,628		13,896		12,660		14,032
Diluted net income per share	$	0.17	$	0.11	$	0.24	$	0.12

For the quarter and year to date ended June 30, 2013, the Company excluded 1,326,354 and 1,318,027 stock option shares, respectively, from the computation of diluted net income per share due to their antidilutive effect. For the quarter and year to date ended July 1, 2012, the Company excluded 1,943,525 and 1,382,042 stock option shares, respectively, from the computation of diluted net income per share due to their antidilutive effect.