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Net Income Per Share
3 Months Ended
Mar. 31, 2014
Earnings Per Share [Abstract]  
Net Income Per Share

NOTE F – Net Income Per Share

Basic net income per share has been computed using the weighted average number of shares of common stock outstanding during each period. Diluted net income per share also includes the impact of our outstanding potential common shares, including options and restricted stock units. Potential common shares that are anti-dilutive are excluded from the calculation of diluted net income per share.

The following table presents the components of the computation of basic and diluted net income per share for the periods indicated (in thousands, except per share amounts):

 

     Three Months Ended  
     March 31,  
     2014      2013  

Numerator

     

Net income

   $ 373       $ 199   
  

 

 

    

 

 

 

Denominator

     

Weighted average common shares outstanding, basic

     16,155         14,884   

Options to purchase common stock

     616         627   

Restricted stock units

     57         51   

Employee stock purchase plan

     2         2   
  

 

 

    

 

 

 

Weighted average common shares outstanding, diluted

     16,830         15,564   
  

 

 

    

 

 

 

Net income per share

     

Basic

   $ 0.02       $ 0.01   
  

 

 

    

 

 

 

Diluted

   $ 0.02       $ 0.01   
  

 

 

    

 

 

 

The effect of approximately 120,000 and 201,000 outstanding potential common shares was excluded from the calculation of diluted net income per share for the three months ended March 31, 2014 and 2013, respectively.