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

	Three Months Ended
	March 31,
	2014		2013
Net income	$	3,045	$	4,123
Basic:
Weighted-average shares of common stock outstanding		30,729		30,292
Shares used in computing basic net income per share		30,729		30,292
Effect of dilutive securities:
Stock options		131		164
Restricted stock subject to vesting		699		536
Shares issuable for acquisition consideration (1)		1,069		509
Shares used in computing diluted net income per share		32,628		31,501

Basic net income per share	$	0.10	$	0.14
Diluted net income per share	$	0.09	$	0.13

Anti-dilutive options and restricted stock not included in the calculation of diluted net income per share		-		2

(1)

For the three months ended March 31, 2014, 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"); (iv) the Asset Purchase Agreement with Clear Task, Inc. ("Clear Task"); (v) the Asset Purchase Agreement with CoreMatrix Systems, LLC ("CoreMatrix"); and (vi) the Agreement and Plan of Merger with ForwardThink Group Inc. ("ForwardThink") as part of the consideration. For the three months ended March 31, 2013, this represents the shares held in escrow pursuant to: (i) the Agreement and Plan of Merger with Northridge; and (ii) the Asset Purchase Agreement with Nascent 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.