Earnings Per Share

6 Months Ended

Jun. 30, 2011

Earnings Per Share [Abstract]

EARNINGS PER SHARE

NOTE 12 — EARNINGS PER SHARE

Basic earnings per share (“EPS”) is computed by dividing income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the assumed conversion of all dilutive securities.

Basic and diluted earnings per share for the three and six months ended June 30, 2011 and 2010 are calculated as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands)	2011		2010		2011		2010
Net Income Attributable to Altisource	$	13,385	$	16,347	$	28,210	$	22,653
Weighted-Average Common Shares Outstanding, Basic		24,625		25,226		24,734		24,960
Dilutive Effect of Stock Options		1,148		1,018		1,117		1,002
Dilutive Effect of Restricted Shares		—		3		—		3
Weighted-Average Common Shares Outstanding, Diluted		25,773		26,247		25,851		25,965
Earnings Per Share
Basic	$	0.54	$	0.65	$	1.14	$	0.91
Diluted	$	0.52	$	0.62	$	1.09	$	0.87

For the three and six months ended June 30, 2011, an immaterial amount of options that were anti-dilutive have been excluded from the computation of diluted EPS (0.2 million for the three and six month ended June 30, 2010). These options were anti-dilutive because their exercise price was greater than the average market price of our stock. Also excluded from the computation of diluted EPS for each of the three and six months ended June 30, 2011 and 2010 are 0.6 and 0.7 million options granted for shares that are issuable upon the achievement of certain market and performance criteria related to our stock price and an annualized rate of return to investors that have not been met at this point.