Net Income Per Share

9 Months Ended

Sep. 30, 2011

7.	Net Income per Share

The Company utilizes the two-class method to compute net income per share. The two-class method allocates a portion of net income to participating securities, which include unvested awards of share-based payments with non-forfeitable rights to receive dividends. Net income allocated to unvested share-based payments is excluded from net income allocated to common shares. Basic net income per share is computed by dividing net income allocated to common shares by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing net income allocated to common shares by the weighted average number of common shares outstanding during the period, plus the dilutive effect of outstanding stock options.

The following table summarizes the net income allocated to common shares and the basic and diluted shares used in the net income per share computations for the three month and nine month periods ended September 30, 2011 and 2010:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
	(in thousands, except per share amounts)

Net income	$	4,099		$	7,234		$	19,626		$	14,651
Less income allocated to participating securities		(120	)		(214	)		(582	)		(428	)
Net income allocated to common shares	$	3,979		$	7,020		$	19,044		$	14,223


Weighted average common shares outstanding		25,425			25,312			25,546			25,258
Incremental shares from assumed conversions of common stock options		74			111			98			105
Adjusted weighted average common shares outstanding		25,499			25,423			25,644			25,363

Potentially dilutive securities not included in weighted average share calculation due to anti-dilutive effect		54			339			21			492