NET INCOME PER SHARE - Note 5

6 Months Ended

Sep. 30, 2011

Notes to Financial Statements

NET INCOME PER SHARE - Note 5

5. NET INCOME PER SHARE

Basic net income per share is computed by dividing net income available to common stockholders (numerator) by the weighted average number of vested, unrestricted common shares outstanding during the period (denominator). Diluted net income per share is computed on the basis of the weighted average number of shares of common stock outstanding plus the effect of dilutive potential common shares outstanding during the period using the treasury stock method. Dilutive potential common shares include shares issuable upon exercise of outstanding stock options and warrants and under the employee stock purchase plan.

		Three Months Ended				Six Months Ended
		September 30,				September 30,
		2011		2010		2011		2010
		(in thousands, except per share amounts)
Numerator:
Net income available to common stockholders	$	832	$	1,969	$	2,779	$	2,987
Denominator:
Common shares		63,710		63,383		62,989		63,495
Denominator for basic calculation		63,710		63,383		62,989		63,495
Employee stock options		3,622		1,331		3,443		1,184
Stock purchase rights		427		133		401		128
Employee stock purchase plan		-		-		-		-
Warrants		-		-		-		-
Denominator for diluted calculation		67,759		64,847		66,833		64,807
Net income per share
Basic	$	0.01	$	0.03	$	0.04	$	0.05
Diluted	$	0.01	$	0.03	$	0.04	$	0.05

The following shares attributable to outstanding stock options and warrants were excluded from the calculation of diluted earnings per share because their inclusion would have been anti-dilutive (in thousands):

	Three Months Ended		Six Months Ended
	September 30,		September 30,
	2011	2010	2011	2010
Employee stock options	174	4,258	549	4,797
Warrants	-	1,786	-	1,786
	174	6,044	549	6,583