Net Income Per Share

9 Months Ended

Sep. 30, 2015

Basic net income per share is computed using the weighted-average number of common shares outstanding for the period. Diluted net income per share is computed by adjusting the weighted-average number of common shares outstanding for the effect of dilutive potential common shares outstanding during the period. Potential common shares included in the diluted calculation consist of incremental shares issuable upon the exercise of outstanding stock options calculated using the treasury stock method.

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



	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2015		2014		2015		2014
Basic net income per share:
Net income	$	8,857	$	1,783	$	10,429	$	13,148
Weighted average common shares	14,730		14,730		14,730		14,781
Basic net income per share	$	0.60	$	0.12	$	0.71	$	0.89
Diluted net income per share:
Net income	$	8,857	$	1,783	$	10,429	$	13,148
Weighted average common shares	14,730		14,730		14,730		14,781
Effect of dilutive securities: stock options	—		41		—		142
Diluted weighted average common shares	14,730		14,771		14,730		14,923
Diluted net income per share	$	0.60	$	0.12	$	0.71	$	0.88

For the three and nine months ended September 30, 2015 and September 30, 2014, options to purchase 775,000 and 150,000 shares of common stock, respectively, were not included in the computation of diluted net income per share because the effect would have been anti-dilutive.