NET INCOME PER SHARE

9 Months Ended

Sep. 27, 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				Nine Months Ended
	September 27,		September 28,		September 27,		September 28,
(In thousands, except per share data)	2014		2013		2014		2013
Net income attributable to Newport Corporation	$	9,470	$	437	$	26,308	$	5,845
Shares:
Weighted average shares outstanding - basic	39,921		39,121		39,776		38,935
Dilutive potential common shares, using treasury stock method	691		536		770		491
Weighted average shares outstanding - diluted	40,612		39,657		40,546		39,426
Net income per share attributable to Newport Corporation:
Basic	$	0.24	$	0.01	$	0.66	$	0.15
Diluted	$	0.23	$	0.01	$	0.65	$	0.15

For the three and nine months ended September 27, 2014, 0.7 million stock appreciation rights, and for the three and nine months ended September 28, 2013, an aggregate of 1.5 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 nine months ended September 28, 2013, eight thousand 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 27, 2014, 0.6 million performance-based restricted stock units, and for the three and nine months ended September 28, 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.