9. Earnings per Share

Pursuant to FASB ASC Topic 260, Earnings Per Share, or ASC 260, the Company provides dual presentation of “basic” and “diluted” earnings per share (“EPS”).

Basic EPS excludes dilution from common stock equivalents and is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution from common stock equivalents and is based on the assumption that the Company’s outstanding options are included in the calculation of diluted earnings per share, except when their effect would be anti-dilutive. Dilution is computed by applying the treasury stock method. Under this method, options are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase common stock at the average market price during the period. The following table reconciles the weighted-average shares outstanding for basic and diluted net income per share for the periods indicated:


	Three Months Ended June 30,
	2011		2010
Net income	$	18,983	$	12,092
Basic net income per share:
Weighted-average shares outstanding — Basic		29,181		28,896


Basic net income per common share	$	0.65	$	0.42


Net income	$	18,983	$	12,092

Diluted net income per share:
Weighted-average shares outstanding — Basic		29,181		28,896
Effect of potentially dilutive securities		219		161


Weighted-average shares outstanding — Diluted		29,400		29,057


Diluted net income per common share	$	0.65	$	0.42

The computation of diluted net income per share does not include 78 and 253 options for the three months ended June 30, 2011 and 2010, respectively, because their inclusion would have an anti-dilutive effect on net income per share.