Computation of Net Income (Loss) per Share

3 Months Ended

Jun. 30, 2011

Net income (loss) per share

Earnings Per Share Text Block

13. Computation of Net Income per Share

Basic and diluted earnings per share are calculated as follows (in thousands, except per share amounts):

		Three Months Ended
			June 30,
		2011		2010
		(unaudited)
Basic:
	Weighted average shares		31,508		31,332
	Net income	$	9,976	$	6,526
	Net income per share	$	0.32	$	0.21
Diluted:
	Weighted average shares		31,508		31,332
	Common equivalent shares from stock options		1,298		369
	Weighted average shares used in diluted per share calculation		32,806		31,701
	Net income	$	9,976	$	6,526
	Net income per share	$	0.30	$	0.21

Basic net income available per common share is computed using net income and the weighted average number of common shares outstandingduring the period. Diluted net income per common share is computed using net income and the weighted average number of common shares outstanding, assuming dilution, which includes potentially dilutive common shares outstanding during the period. Potentially dilutive common shares include the assumed exercise of stock options and assumed vesting of restricted stock units using the treasury stock method. During the three months endedJune 30, 2011 and 2010, there were outstanding weighted average options to purchase 619,173and 2,757,306 shares, respectively, that were not included in the computation of diluted net income per share since the exercise prices of the options exceeded the market price of the common stock. These options could dilute earnings per share in future periodsif the market price of the common stock increases.