Condensed Consolidated Statements of Operations (USD $) In Thousands, except Per Share data	3 Months Ended	6 Months Ended
Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Revenues	$ 51,543	$ 48,349	$ 102,142	$ 88,971
Cost of revenues	23,684	23,159	46,986	43,494
Gross profit	27,859	25,190	55,156	45,477
Operating expenses:
Research and development	9,550	8,480	18,445	16,327
Selling, general and administrative	9,858	10,009	19,733	19,015
Amortization	444	413	887	826
Total operating expenses	19,852	18,902	39,065	36,168
Operating income	8,007	6,288	16,091	9,309
Interest income	43	44	85	80
Other income (expense)	(120)	1,040	(96)	751
Income before income taxes	7,930	7,372	16,080	10,140
Provision for income taxes	973	859	2,384	1,582
Net income	$ 6,957	$ 6,513	$ 13,696	$ 8,558
Earnings per share:
Basic	$ 0.22	$ 0.21	$ 0.43	$ 0.27
Diluted	$ 0.22	$ 0.21	$ 0.43	$ 0.27
Weighted average shares outstanding:
Basic	31,589	31,216	31,626	31,176
Diluted	32,038	31,437	32,117	31,405

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The aggregate expense charged against earnings to allocate the cost of intangible assets (nonphysical assets not used in production) in a systematic and rational manner to the periods expected to benefit from such assets. As a noncash expense, this element is added back to net income when calculating cash provided by (used in) operations using the indirect method.

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The aggregate cost of goods produced and sold and services rendered during the reporting period.

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The amount of net income or loss for the period per each share of common stock outstanding during the reporting period.

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The sum of the current income tax expense (benefit) and the deferred income tax expense (benefit) pertaining to continuing operations.

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Amount of net interest income or expense derived from banking operations.

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The portion of consolidated profit or loss for the period, net of income taxes, which is attributable to the parent. If the entity does not present consolidated financial statements, the amount of profit or loss for the period, net of income taxes.

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Generally recurring costs associated with normal operations except for the portion of these expenses which can be clearly related to production and included in cost of sales or services. Includes selling, general and administrative expense.

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The net result for the period of deducting operating expenses from operating revenues.

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The net amount of other nonoperating income and expense, which does not qualify for separate disclosure on the income statement under materiality guidelines.

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The aggregate costs incurred (1) in a planned search or critical investigation aimed at discovery of new knowledge with the hope that such knowledge will be useful in developing a new product or service, a new process or technique, or in bringing about a significant improvement to an existing product or process; or (2) to translate research findings or other knowledge into a plan or design for a new product or process or for a significant improvement to an existing product or process whether intended for sale or the entity's use, during the reporting period charged to research and development projects, including the costs of developing computer software up to the point in time of achieving technological feasibility, and costs allocated in accounting for a business combination to in-process projects deemed to have no alternative future use.

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Aggregate revenue recognized during the period (derived from goods sold, services rendered, insurance premiums, or other activities that constitute an entity's earning process). For financial services companies, also includes investment and interest income, and sales and trading gains.

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The aggregate total costs related to selling a firm's product and services, as well as all other general and administrative expenses. Direct selling expenses (for example, credit, warranty, and advertising) are expenses that can be directly linked to the sale of specific products. Indirect selling expenses are expenses that cannot be directly linked to the sale of specific products, for example telephone expenses, Internet, and postal charges. General and administrative expenses include salaries of non-sales personnel, rent, utilities, communication, etc.

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The average number of shares issued and outstanding that are used in calculating diluted EPS, determined based on the timing of issuance of shares in the period.

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Number of [basic] shares, after adjustment for contingently issuable shares and other shares not deemed outstanding, determined by relating the portion of time within a reporting period that common shares have been outstanding to the total time in that period.

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