NET INCOME PER SHARE

9 Months Ended

Sep. 29, 2012

NET INCOME PER SHARE

NET INCOME PER SHARE

NOTE 11      NET INCOME PER SHARE

The following table sets forth the computation of basic and diluted net income per share:

	Three Months Ended				Nine Months Ended
	September 29,		October 1,		September 29,		October 1,
(In thousands, except per share data)	2012		2011		2012		2011
Net income attributable to Newport Corporation	$	7,636	$	10,502	$	23,382	$	45,183
Shares:
Weighted average shares outstanding - basic	38,264		37,543		38,072		37,342
Dilutive potential common shares, using treasury stock method	381		1,028		753		1,390
Weighted average shares outstanding - diluted	38,645		38,571		38,825		38,732
Net income per share attributable to Newport Corporation:
Basic	$	0.20	$	0.28	$	0.61	$	1.21
Diluted	$	0.20	$	0.27	$	0.60	$	1.17

For the three and nine months ended September 29, 2012, a total of 1.0 million stock options and stock-settled stock appreciation rights, and for the three and nine months ended October 1, 2011, a total of 0.7 million stock options and stock-settled stock appreciation rights and a total of 0.6 million stock options and stock-settled stock appreciation rights, respectively, were excluded from the computations of diluted net income per share, as their exercise prices (or base values) exceeded the average market price of the Company’s common stock during such periods, and their inclusion would have been antidilutive.  For the three and nine months ended September 29, 2012, 0.2 million restricted stock units and for the three and nine months ended October 1, 2011, 0.3 million restricted stock units were excluded from the computations of diluted net income per share, as the amount of unrecognized future compensation expense associated with these restricted stock units would have resulted in assumed proceeds in excess of the amount required to repurchase the underlying shares under the treasury stock method, and, therefore, their inclusion would have been antidilutive.  For the three and nine months ended September 29, 2012, an additional 0.4 million performance-based restricted stock units were excluded from the computations of diluted net income per share, as the performance criteria for their vesting had not been met as of the end of such period.