Net Income Per Share

6 Months Ended

Jun. 30, 2015

4. Net Income Per Share

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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2015		2014		2015		2014
Net income	$	315	$	3,469	$	801	$	3,980
Weighted average common basic shares		41,020		40,978		41,018		40,974
Effect of dilutive securities		364		296		329		304
Weighted average common dilutive shares		41,384		41,274		41,347		41,278
Basic and diluted net income per share	$	0.01	$	0.08	$	0.02	$	0.10

For the three and six months ended June 30, 2015, the computation of diluted net income per share included options to purchase 825 thousand shares that had a dilutive effect of 339 thousand shares and 318 thousand shares, respectively. Options to purchase 260 thousand shares were not included in the computation of diluted net income per share for the three and six months ended June 30, 2015, since their exercise price was in excess of the average stock prices for these periods.

On March 10, 2015, the Compensation Committee of the Board of Directors of the Company awarded 141 thousand restricted stock units to executive officers. Such restricted stock units will vest, and an equal number of shares of common stock will be deliverable upon the third anniversary of the date of grant. Compensation expense related to the units was calculated based upon the closing market price of the common stock on the date of grant ($2.44) and is recorded on a straight-line basis over the vesting period. These units had a dilutive effect of 25 thousand and 11 thousand shares for the three and six months ended June 30, 2015.

For the three and six months ended June 30, 2014, the computation of diluted net income per share included 5 thousand shares of unvested restricted common stock and exercisable options to purchase 825 thousand shares that had a dilutive effect of 291 thousand shares and 299 thousand shares, respectively. Options to purchase 350 thousand shares were not included in the computation of diluted net income per share for the three and six months ended June 30, 2014, since their exercise prices were in excess of the average stock prices for these periods.