Net Income Per Share

9 Months Ended

Sep. 30, 2013

Net Income Per Share [Abstract]

Net Income Per Share

4. Net Income per Share

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

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2013		2012		2013		2012
Net income	$	7,234	$	5,142	$	15,919	$	11,731
Basic:
Weighted-average shares of common stock outstanding		30,141		30,021		30,287		29,273
Shares used in computing basic net income per share		30,141		30,021		30,287		29,273
Effect of dilutive securities:
Stock options		154		190		156		201
Restricted stock subject to vesting		773		662		634		619
Contingently issuable shares		-		104		-		107
Shares issuable for acquisition consideration (1)		740		697		615		644
Shares used in computing diluted net income per share		31,808		31,674		31,692		30,844
Basic net income per share	$	0.24	$	0.17	$	0.53	$	0.40
Diluted net income per share	$	0.23	$	0.16	$	0.50	$	0.38
Anti-dilutive options and restricted stock not included in the calculation of diluted net income per share		-		14		1		14

(1) For the three and nine months ended September 30, 2013, this represents the shares held in escrow pursuant to: (i) the Agreement and Plan of Merger with Northridge Systems, Inc. ("Northridge"); (ii) the Asset Purchase Agreement with Nascent Systems, LP ("Nascent"); (iii) the Agreement and Plan of Merger with TriTek Solutions, Inc. ("TriTek"); and (iv) the Asset Purchase Agreement with Clear Task, Inc. ("Clear Task") as part of the consideration.  For the three and nine months ended September 30, 2012, this represents the shares held in escrow pursuant to: (i) the Agreement and Plan of Merger with speakTECH; (ii) the Asset Purchase Agreement with PointBridge Solutions, LLC ("PointBridge"); (iii) the Asset Purchase Agreement with Nascent; and (iv) the Agreement and Plan of Merger with Northridge as part of the consideration. These shares were not included in the calculation of basic net income per share due to the uncertainty of their ultimate status.