Net Income Per Share

6 Months Ended

Jun. 30, 2014

Earnings Per Share [Abstract]

Net Income Per Share

9. NET INCOME PER SHARE:

A reconciliation of net income and weighted average shares used in computing basic and diluted net income per share is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2014		2013		2014		2013
	(In Thousands, Except Per Share Data)
Basic net income per share:
Net income applicable to common shares	$	1,721	$	1,414	$	2,432	$	525
Weighted average common shares outstanding		11,108		10,791		11,038		10,834
Basic net income per share of common stock	$	0.15	$	0.13	$	0.22	$	0.05
Diluted net income per share:
Net income applicable to common shares	$	1,721	$	1,414	$	2,432	$	525
Weighted average common shares outstanding		11,108		10,791		11,038		10,834
Dilutive effects of stock options		2,036		637		1,858		612
Weighted average common shares, assuming dilutive effect of stock options		13,144		11,428		12,896		11,447
Diluted net income per share of common stock	$	0.13	$	0.12	$	0.19	$	0.05

Share-based awards, inclusive of all grants made under the Company’s equity plans, for which either the stock option exercise price or the fair value of the restricted share award exceeds the average market price over the period, have an anti-dilutive effect on earnings per share, and accordingly, are excluded from the diluted computations for all periods presented. Had such shares been included, shares for the diluted computation would have increased by approximately 27 thousand and 47 thousand in the three- and six-month periods ended June 30, 2014, respectively. The diluted computation would have increased by approximately 1.6 million and 1.7 million, respectively, in the three- and six-month periods ended June 30, 2013. As of June 30, 2014 and 2013, there were approximately 4.1 million and 4.3 million share-based awards outstanding, respectively, under the Company’s equity plans.