NET INCOME PER SHARE

6 Months Ended

Jun. 28, 2014

NET INCOME PER SHARE

NET INCOME PER SHARE

NOTE 11NET 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 28,		June 29,		June 28,		June 29,
(In thousands, except per share data)	2014		2013		2014		2013
Net income attributable to Newport Corporation	$	8,952	$	2,662	$	16,838	$	5,408
Shares:
Weighted average shares outstanding - basic	39,881		39,085		39,703		38,843
Dilutive potential common shares, using treasury stock method	647		276		810		468
Weighted average shares outstanding - diluted	40,528		39,361		40,513		39,311
Net income per share attributable to Newport Corporation:
Basic	$	0.22	$	0.07	$	0.42	$	0.14
Diluted	$	0.22	$	0.07	$	0.42	$	0.14

For the three and six months ended June 28, 2014, an aggregate of 0.7 million stock appreciation rights, and for the three and six months ended June 28, 2013, 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 inclusion would have been antidilutive.  For the three and six months ended June 29, 2013, 0.4 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 28, 2014, 0.6 million performance-based restricted stock units, and for the three and six months ended June 29, 2013, an additional 0.7 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.