Net Income (Loss) Per Share

3 Months Ended

Jun. 30, 2012

Net Income (Loss) Per Share

Note 2. Net Income (Loss) Per Share

Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income (loss) per share is computed by dividing net income (loss) by the weighted average number of dilutive common shares outstanding during the period. Diluted shares outstanding is calculated by adding to the weighted average shares outstanding any potential dilutive securities outstanding for the period. Potential dilutive securities include stock options, restricted stock awards, restricted stock units, performance-based stock awards and shares to be purchased under the employee stock purchase plan. In periods when a net loss is reported, all common stock equivalents are excluded from the calculation because they would have an anti-dilutive effect, meaning the loss per share would be reduced. Therefore, in periods when a loss is reported, basic and dilutive loss per share are the same. The Company’s basic and diluted net income (loss) per share for the three months ended June 30, 2012 and 2011 were as follows (in thousands, except per share data):

	Three Months Ended June 30,
	2012		2011
Basic Net Income (Loss) Per Share
Net income (loss)	$	3,119	$	(4,594	)
Weighted average shares used in computing basic net income (loss) per share		39,144		38,268
Net income (loss) per share - basic	$	0.08	$	(0.12	)

	Three Months Ended June 30,
	2012		2011
Diluted Net Income (Loss) Per Share
Net income (loss)	$	3,119	$	(4,594	)
Weighted average shares used in computing basic net income (loss) per share		39,144		38,268
Effect of dilutive securities		2,405		—
Weighted average shares used in computing diluted net income (loss) per share		41,549		38,268
Net income (loss) per share - diluted	$	0.08	$	(0.12	)

For the three months ended June 30, 2012, approximately 490,000 shares underlying outstanding securities were not included in the computation of diluted earnings per share primarily related to out-of-the-money stock options and performance-based awards where milestones were not met. For the three months ended June 30, 2011, approximately 3,565,000 shares underlying stock options and approximately 837,000 restricted shares were excluded from the calculation of diluted weighted average shares outstanding because the Company incurred a loss in the period, and to include them would have been anti-dilutive.