Net Income Per Share

9 Months Ended

Sep. 29, 2012

Earnings Per Share [Abstract]

Net Income Per Share

Note 11. Net Income Per Share

Basic net income per share excludes dilution and is computed by dividing net income by the number of weighted average common shares outstanding for the period. Diluted net income per share gives effect to all potentially dilutive common shares outstanding during the period, including contingently issuable shares and certain stock options, calculated using the treasury stock method. A reconciliation of the share denominator of the basic and diluted net income per share computations is as follows (in thousands):

	Three Months Ended		Nine Months Ended
	September 29, 2012	October 1, 2011	September 29, 2012	October 1, 2011
Weighted average common shares outstanding used in basic net income per share calculation	23,310	22,875	23,351	22,715
Potential dilutive common stock equivalents, using treasury stock method	450	651	523	774
Shares used in diluted net income per share computation	23,760	23,526	23,874	23,489

For the three and nine month periods ended September 29, 2012 and October 1, 2011, the Company had securities outstanding that could potentially dilute basic earnings per share in the future. For the three and nine month periods ended September 29, 2012, weighted average common share equivalents consisting of stock options included in the calculation of diluted net income per share were 0.5 million. For the three and nine month periods ended October 1, 2011, weighted average common share equivalents consisting of stock options included in the calculation of diluted net income per share were 0.7 million and 0.8 million respectively. However, these potential dilutive common stock equivalents would be anti-dilutive and excluded from the calculation of net loss per share, if a net loss was to be incurred in the future.