NET INCOME PER SHARE

6 Months Ended

Jun. 29, 2013

NET INCOME PER SHARE

NET INCOME PER SHARE

NOTE 10 NET INCOME PER SHARE

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

	Three Months Ended				Six Months Ended
	June 29,		June 30,		June 29,		June 30,
(In thousands, except per share data)	2013		2012		2013		2012
Net income attributable to Newport Corporation	$	2,662	$	9,154	$	5,408	$	15,746
Shares:
Weighted average shares outstanding - basic	39,085		38,220		38,843		37,975
Dilutive potential common shares, using treasury stock method	276		678		468		940
Weighted average shares outstanding - diluted	39,361		38,898		39,311		38,915
Net income per share attributable to Newport Corporation:
Basic	$	0.07	$	0.24	$	0.14	$	0.41
Diluted	$	0.07	$	0.24	$	0.14	$	0.40

For the three and six months ended June 29, 2013, an aggregate of 0.9 million stock options and stock appreciation rights, and for the three and six months ended June 30, 2012, an aggregate of 0.9 million stock options and stock appreciation rights, 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 six months ended June 29, 2013, 0.4 million restricted stock units, and for the three and six months ended June 30, 2012, 0.2 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 six months ended June 29, 2013, an additional 0.7 million performance-based restricted stock units, and for the three and six months ended June 30, 2012, 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 periods.