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
	March 30, 2014		March 31, 2013
Net income	$	1,079	$	832
Weighted average common shares outstanding	12,800		12,482
Basic net income per share	$	0.08	$	0.07
Dilutive effect of stock options and RSUs	113		211
Common stock and common stock equivalents	12,913		12,693
Diluted net income per share	$	0.08	$	0.07

The Company excluded 886,586 and 1,309,700 stock option shares from the computation of diluted net income per share for the quarters ended March 30, 2014 and March 31, 2013, respectively, due to their antidilutive effect.