Net Income Per Share

3 Months Ended

Mar. 31, 2016

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
	March 31,
	2016		2015
Basic net income per share:
Net income	$	2,049	$	730
Weighted average common shares	14,425		14,730
Basic net income per share	$	0.14	$	0.05
Diluted net income per share:
Net income	$	2,049	$	730
Weighted average common shares	14,425		14,730
Effect of dilutive securities: stock options	—		—
Diluted weighted average common shares	14,425		14,730
Diluted net income per share	$	0.14	$	0.05

For the three months ended March 31, 2016 and March 31, 2015, options to purchase 600,000 and 425,000 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.