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

	Three Months Ended
		June 30,
	2013		2012

	(unaudited)
Net income	$	1,979	$	6,007
Weighted average shares - basic		30,948		31,351
Weighted average shares - diluted		31,635		32,378
Net income per share - basic	$	0.06	$	0.19
Net income per share - diluted	$	0.06	$	0.19

Diluted weighted average shares includes approximately 687,000 and 1,027,000 common equivalent shares from stock options for the three months ended June 30, 2013 and 2012.

Basic net income available per common share is computed using net income and the weighted average number of common shares outstanding during 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 ended June 30, 2013 and 2012, there were outstanding weighted average options to purchase 2,657,320 and 1,682,804 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 periods if the market price of the common stock increases.