Note 7 - Net Income Per Share

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Earnings Per Share [Text Block]

7.

  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.  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,
	201 6		201 5		201 4
Numerator:
Net income	$	9,103	$	12,407	$	18,462
Denominator:
Basic weighted-average shares outstanding		31,373		31,424		30,743
Effect of dilutive options and restricted stock		1,058		740		1,196
Diluted weighted-average shares outstanding		32,431		32,164		31,939
Net income per share – Basic	$	0.29	$	0.39	$	0.60
Net income per share – Diluted	$	0.28	$	0.39	$	0.58

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

	December 31,
	201 6		201 5
Outstanding options		134		127
Nonvested shares of restricted stock units		18		714
Employee Stock Purchase Plan		121		255
Total		273		1,096