Net Income Per Share

6 Months Ended

Jul. 02, 2011

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

Net Income Per Share:

Net income per share is computed based on the weighted average number of shares of common stock and potentially dilutive securities assumed to be outstanding during the period using the treasury stock method. Potentially dilutive securities consist of stock options, restricted stock units (“RSUs”) and employee stock purchase plan ("ESPP") shares.

A reconciliation of basic and diluted Net income per share is presented below (in thousands, except per share data):

	Three Months Ended				Six Months Ended
	July 2, 2011		July 3, 2010		July 2, 2011		July 3, 2010
Net income	$	13,031	$	16,736	$	23,950	$	27,825
Shares used in basic Net income per share	118,047		116,101		118,021		115,873
Dilutive effect of stock options, RSUs and ESPP shares	3,421		4,169		3,674		2,854
Shares used in diluted Net income per share	121,468		120,270		121,695		118,727
Basic Net income per share	$	0.11	$	0.14	$	0.20	$	0.24
Diluted Net income per share	$	0.11	$	0.14	$	0.20	$	0.23

The computation of Diluted Net income per share for the three and six months ended July 2, 2011, excludes the effects of stock options and RSUs aggregating 4.0 million and 3.6 million shares, respectively, as they are antidilutive. The computation of diluted net income per share for the three and six months ended July 3, 2010, excludes the effects of stock options and RSUs aggregating 1.8 million and 3.0 million shares, respectively, as they are antidilutive. Stock options, RSUs and ESPP shares are considered antidilutive when the aggregate of exercise price, unrecognized stock-based compensation expense and excess tax benefit are greater than the average market price for our common stock during the period or when the Company is in a net loss position. Stock options and RSUs that are antidilutive in the second quarter of fiscal 2011 could become dilutive in the future.