Net Income Per Share

3 Months Ended

Jun. 30, 2016

Earnings Per Share [Abstract]

Net Income Per Share

Note 2. Net Income Per Share

Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing net income by the weighted average number of dilutive common shares outstanding during the period. Diluted shares outstanding are 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 units, performance-based stock awards and shares to be purchased under the Company’s 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 per share for the three months ended June 30, 2016 and 2015 were as follows (in thousands, except per share data):

	For the Three Months Ended June 30,
	2016		2015
Basic Net Income Per Share
Net income	$	12,910	$	8,859
Weighted average shares used in computing basic net    income per share		42,811		41,696
Net income per share - basic	$	0.30	$	0.21

	For the Three Months Ended June 30,
	2016		2015
Diluted Net Income Per Share
Net income	$	12,910	$	8,859
Weighted average shares used in computing basic net    income per share		42,811		41,696
Effect of dilutive securities		2,367		2,714
Weighted average shares used in computing diluted    net income per share		45,178		44,410
Net income per share - diluted	$	0.29	$	0.20

For the three months ended June 30, 2016, approximately 48,000 shares underlying out-of-the-money stock options were not included in the computation of diluted earnings per share because their effect would have been anti-dilutive. Also, approximately 241,000 restricted shares in each of the three months ended June 30, 2016, related to performance-based awards for which milestones have not been met, were not included in the computation of diluted earnings per share.

For the three months ended June 30, 2015, approximately 2,000 shares underlying out-of-the-money stock options were not included in the computation of diluted earnings per share because their effect would have been anti-dilutive. Also, approximately 234,000 restricted shares in each of the three months ended June 30, 2015 related to performance-based awards for which milestones had not been met were not included in the computation of diluted earnings per share.