Net Income per Common Share

3 Months Ended

Mar. 31, 2013

Net Income per Common Share

Net Income per Common Share

NOTE B—Net Income per Common Share

        The following tables reconcile income (numerator) and shares (denominator) used in the computations of net income per common share (in thousands, except per share data):

	Three Months Ended March 31,
	2012		2013
Numerator:
Net income	$	20,790	$	28,058
Denominator:
Weighted average number of common shares outstanding—basic		27,199		27,110
Common stock equivalents—stock options		432		467
Common stock equivalents—restricted stock		13		17
Common stock equivalents—restricted stock units		102		52
Common stock equivalents—employee stock purchase plan		1		2
Weighted average number of common shares outstanding—diluted		27,747		27,648
Net income per common share—basic	$	0.76	$	1.03
Net income per common share—diluted	$	0.75	$	1.01

        The weighted average number of common shares outstanding for the three months ended March 31, 2012 and 2013 were calculated using outstanding shares of the Company's common stock. Common stock equivalents included in the calculation of diluted weighted average common shares outstanding for the three months ended March 31, 2012 and 2013 represent stock options to purchase shares of the Company's common stock, restricted stock awards and restricted stock units, and stock purchased under the Employee Stock Purchase Plan.

        The Company had additional potential dilutive securities outstanding representing 1.6 million and 1.7 million options for the three months ended March 31, 2012 and 2013, respectively, that were not included in the computation of dilutive securities because they were anti-dilutive for the period. Had these shares not been anti-dilutive, all of these shares would not have been included in the net income per common share calculation as the Company uses the treasury stock method of calculating diluted shares.