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

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2014		2013		2014		2013
Net income	$	6,387	$	4,562	$	9,433	$	8,685
Basic:
Weighted-average shares of common stock outstanding		31,564		30,428		31,147		30,360
Shares used in computing basic net income per share		31,564		30,428		31,147		30,360
Effect of dilutive securities:
Stock options		96		150		113		157
Restricted stock subject to vesting		485		592		592		564
Contingently issuable shares (1)		38		-		19		-
Shares issuable for acquisition consideration (2)		1,088		598		1,078		553
Shares used in computing diluted net income per share		33,271		31,768		32,949		31,634

Basic net income per share	$	0.20	$	0.15	$	0.30	$	0.29
Diluted net income per share	$	0.19	$	0.14	$	0.29	$	0.27

Anti-dilutive options and restricted stock not included in the calculation of diluted net income per share		290		-		145		1

(1)	For the three and six months ended June 30, 2014, this represents the Company's estimate of shares to be issued to Clear Task, Inc. ("Clear Task") pursuant to the Asset Purchase Agreement. Refer to Note 7 for further discussion.

(2)

For the three and six months ended June 30, 2014, this represents the shares held in escrow pursuant to: (i) the Agreement and Plan of Merger with Northridge Systems, Inc. ("Northridge"); (ii) the Agreement and Plan of Merger with TriTek Solutions, Inc. ("TriTek"); (iii) the Asset Purchase Agreement with Clear Task; (iv) the Asset Purchase Agreement with CoreMatrix Systems, LLC ("CoreMatrix"); (v) the Agreement and Plan of Merger with ForwardThink Group Inc. ("ForwardThink"); (vi) the Asset Purchase Agreement with BioPharm Systems, Inc. and (vii) the Asset Purchase Agreement with Trifecta Technologies, Inc. and Trifecta Technologies Canada, Limited as part of the consideration. For the three and six months ended June 30, 2013, this represents the shares held in escrow pursuant to: (i) the Agreement and Plan of Merger with Northridge; (ii) the Asset Purchase Agreement with Nascent Systems, LP; (iii) the Agreement and Plan of Merger with TriTek; (iv) and the Asset Purchase Agreement with Clear Task as part of the consideration.