Net Income Per Share

3 Months Ended

Oct. 02, 2011

Basic net income per share is calculated by dividing net income by the weighted average number of common shares outstanding during the period and excludes any dilutive effects of options and stock awards. Diluted net income per share is calculated by dividing net income by the weighted average number of common shares used in the basic earnings per share calculation plus the dilutive effect of options, stock awards and ESPP.

The following table presents the calculation of basic and diluted net income per share (in thousands, except per share data):



	Three Months Ended
	October 2, 2011		September 26, 2010
Net income	$	1,583	$	2,712
Weighted-average shares used in per share calculation – basic	92,768		90,305
Incremental shares using the treasury stock method:
Stock options	316		271
Unvested restricted awards	820		34
Employee Stock Purchase Plan	151		—
Weighted-average share used in per share calculation – diluted	$	94,055	$	90,610
Net income per share – basic	$	0.02	$	0.03
Net income per share – diluted	$	0.02	$	0.03

The following table sets forth weighted stock options outstanding that are not included in the diluted net income per share calculation above because to do so would be anti-dilutive for the periods (in thousands):



	Three Months Ended
	October 2, 2011	September 26, 2010
Weighted stock options outstanding:
In-the-money options	—	—
Out-of-the-money options	8,713	7,157
Total potential shares of common stock excluded from the computation of net income per share	8,713	7,157

Weighted stock options outstanding with an exercise price lower than the Company’s average stock price for the periods presented (“in-the-money options”) are excluded from the calculation of diluted net income per share in the three months ended October 2, 2011 and the three months ended September 26, 2010 since the effect of including them would have been anti-dilutive due to the net income position of the Company during the periods presented.