Note 8 - Net Income Per Share

12 Months Ended

Dec. 31, 2015

Notes to Financial Statements

Earnings Per Share [Text Block]

8

.  Net Income Per Share

Basic net income per share is computed by dividing net income by weighted average number of common shares outstanding for the period (excluding outstanding stock options and shares subject to repurchase). Diluted net income per share is computed using the weighted-average number of common shares outstanding for the period plus the potential effect of dilutive securities which are convertible into common shares (using the treasury stock method), except in cases in which the effect would be anti-dilutive. Under the treasury stock method, the amount that the employee must pay for exercising stock options, the amount of compensation cost for future service that the Company has not yet recognized, and the amount of the tax benefits that would be recorded in additional paid-in capital when the award becomes deductible are assumed to be used to repurchase shares.  The following is a reconciliation of the numerators and denominators used in computing basic and diluted net income per share (in thousands except per share amount):

	Year Ended December 31,
	2015		2014		2013
Numerator:
Net income	$	12,407	$	18,462	$	20,929
Denominator:
Basic weighted-average shares outstanding		31,424		30,743		29,826
Effect of dilutive options and restricted stock		740		1,196		1,567
Diluted weighted-average shares outstanding		32,164		31,939		31,393
Net income per share - Basic	$	0.39	$	0.60	$	0.70
Net income per share - Diluted	$	0.39	$	0.58	$	0.67

 The following table sets forth potential shares of common stock that are not included in the diluted net loss per share calculation above because to do so would be anti-dilutive for the periods indicated (in thousands):

	December 31,
	2015		2014
Outstanding options		127		61
Nonvested shares of restricted stock units		714		19
Employee Stock Purchase Plan		255		50
Total		1,096		130