Basic And Diluted Net Income Per Share

9 Months Ended

Oct. 02, 2011

Basic and Diluted Net Income Per Share

The following table sets forth the computation of basic and diluted net income per share:



	Three Months Ended				Nine Months Ended
(In thousands, except per share amounts)	October 1, 2011		October 2, 2010		October 1, 2011		October 2, 2010
Numerator:
Net income	$	10,464	$	4,902	$	28,059	$	10,467
Denominator:
Basic weighted-average shares outstanding	25,977		24,370		25,678		24,204
Effect of dilutive employee stock options and restricted stock units	670		697		942		488
Diluted weighted-average shares outstanding	26,647		25,067		26,620		24,692
Net income per share - basic:
Net income	$	0.40	$	0.20	$	1.09	$	0.43
Net income per share - diluted:
Net income	$	0.39	$	0.20	$	1.05	$	0.42

For the three month and nine month periods ended October 1, 2011, 1.3 million shares and 0.9 million shares, respectively, of common stock subject to outstanding options were excluded from the computation of diluted net income per share, as the effect would have been anti-dilutive, compared to 1.3 million shares and 1.5 million shares of common stock subject to outstanding options for each of the corresponding periods of 2010. In addition, for each of the three month and nine month periods ended October 1, 2011, the number of shares, respectively, of common stock underlying outstanding restricted stock units excluded from the computation was 0.2 million shares and 0.1 million shares, compared to an immaterial amount for the corresponding periods in 2010. Options and restricted stock units are anti-dilutive when we have a net loss or when the exercise price and the average unrecognized compensation cost of the stock option or restricted stock unit is greater than the average market price of our common stock during the period.