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lease agreement, the applicable landlord has the right to draw upon its letter of credit in whole or in part. Interest under this facility, including interest on any amounts drawn under the letters of credit, is payable monthly at an annual rate of 1.25%. The credit facility is collateralized by the Company’s accounts receivable. 12. employee benefiT plan Effective August 1, 1993, the Company established a 401(k) retirement plan, or the Plan, covering all eligible employees, as defined. Eligible employees who are at least 21 years old may participate. Under the terms of the Plan, participants may defer a portion of their salaries as employee contributions. The Company makes matching contributions and may make discretionary contributions. Employee contributions and discretionary contributions made by the Company are 100% vested immediately. In general, the Company’s matching and discretionary contributions vest ratably over OPNET Technologies, Inc. 2011 Annual Report 46 a five-year period. The Company’s expense under this Plan for fiscal 2011, 2010, and 2009 was $1.3 million, $1.1 million, and $1.4 million, respectively. 13. earnings per share On April 1, 2009, the Company adopted FSP EITF 03-6-1 (as codified in ASC 260). This FSP addresses whether awards granted in sharebased transactions are participating securities prior to vesting and therefore need to be included in the earning allocation in computing earnings per share using the two-class method under ASC 260. FSP EITF 03-6-1 requires nonvested share-based payment awards that have non-forfeitable rights to dividends or dividend equivalents to be treated as a separate class of securities in calculating earnings per share. The Company’s participating securities include nonvested restricted stock. FSP EITF 03-6-1 was applied retrospectively and therefore prior period information was adjusted. The following is a reconciliation of the amounts used in calculating basic and diluted net income per common share for fiscal 2011, 2010, and 2009: 2011 2010 2009 (dollars in thousands, except per share amounts) Net income (numerator): Basic and diluted net income attributable to common stockholders $ 12,401 $ 5,823 $ 4,732 Dividends paid on nonvested restricted stock (183) (72) — Undistributed earnings attributable to nonvested restricted stock — — (44) Net income available to common stockholders excluding nonvested restricted stock $ 12,218 $ 5,751 $ 4,688 Shares (denominator): Weighted average common shares outstanding – basic 21,428,618 20,529,036 20,296,165 Effect of other dilutive securities - options 701,040 261,438 237,212 Weighted average diluted shares outstanding 22,129,658 20,790,474 20,533,377 Net income per common share: Basic $ 0.57 $ 0.28 $ 0.23 Diluted $ 0.55 $ 0.28 $ 0.23 The weighted average diluted shares outstanding during any period does not include shares issuable upon exercise of any stock option where the exercise price of the stock option is greater than the average market price because including them would be antidilutive. There were no options with an anti-dilutive effect during fiscal 2011. Options for the purchase of 1,036,800 and 1,745,390 common shares were excluded from the weighted average diluted shares outstanding for fiscal 2010 and 2009, respectively, because their effect was anti-dilutive. 14. sToCKholDers’ equiTy Treasury Stock On January 31, 2005, the Company announced that the Board had authorized the repurchase of up to 1,000,000 shares of the Company’s common stock from time to time on the open market or in privately negotiated transactions. On February 4, 2008, the Company announced that the Board had authorized the repurchase of an additional 1,000,000 shares of the Company’s common stock under the stock repurchase program. This stock repurchase program does not have a specified termination date. Any repurchased shares will be available for use in connection with the Company’s stock plans or other corporate purposes. The Company expended $3.6 million, $2.3 million, and $955,000 to purchase 223,399, 186,550, and 75,724 shares during fiscal 2011, 2010, and 2009, respectively, at an average price of $16.26, $12.27, and $12.61. Restricted stock shares withheld from employees to satisfy the minimum statutory withholding obligations with respect to the income recognized by these employees upon the vesting of their restricted stock shares during the year are included in these totals. As of March 31, 2011, the Company had repurchased 1,521,360 shares of common stock under the stock repurchase program.
Dividend OPNET Technologies, Inc. 2011 Annual Report The Company did not declare or pay any dividends in fiscal 2009. The following table summarizes the Company’s quarterly cash dividend payments for fiscal 2011 and 2010 and the one-time special dividend payment in November 2010: Declaration Date Stockholder Record Date Payment Date Amount per Share May 13, 2009 June 15, 2009 June 29, 2009 $0.09 July 30, 2009 September 15, 2009 September 29, 2009 $0.09 October 28, 2009 December 15, 2009 December 30, 2009 $0.09 January 27, 2010 March 15, 2010 March 30, 2010 $0.09 May 5, 2010 June 15, 2010 June 30, 2010 $0.10 August 4, 2010 September 14, 2010 September 29, 2010 $0.10 October 27, 2010 November 14, 2010 November 30, 2010 $0.75 October 27, 2010 December 7, 2010 December 21, 2010 $0.10 January 26, 2011 March 16, 2011 March 30, 2011 $0.10 The declaration of cash dividends in the future is subject to final determination each quarter by the Board based on a number of factors, including the Company’s financial performance and available cash resources, its cash requirements and alternative uses of cash that the Board may conclude would represent an opportunity to generate a greater return on investment for the Company. The Board may decide that future dividends will be in amounts that are different than the amount described above or may decide to suspend or discontinue the payment of cash dividends altogether. 15. Comprehensive inCome Comprehensive income includes net income, foreign currency translation adjustments, and net unrealized (losses)/gains on marketable securities. The components of comprehensive income for fiscal 2011, 2010, and 2009, net of tax, are as follows: 2011 2010 2009 Net income Foreign currency $ 12,401 $ 5,823 $ 4,732 translation adjustments Net unrealized gains 346 172 (1,712) on marketable securities 4 — 381 Total comprehensive income $ 12,751 $ 5,995 $ 3,401 Accumulated other comprehensive loss includes foreign currency translation adjustments and net unrealized (losses)/gains on marketable securities. The components of accumulated other comprehensive (loss) income at March 31, 2011 and 2010, net of tax, are as follows: 2011 2010 Foreign currency translation adjustments $ (653) $ (999) Net unrealized gains on marketable securities 4 — Total accumulated other comprehensive loss $ (649) $ (999) 47 16. business segmenT anD geographiC area informaTion The Company operates in one industry segment, the development and sale of computer software programs and related services. The chief operating decision maker evaluates the performance of the Company using one industry segment. For the years ended March 31, 2011, 2010, and 2009, revenue from transactions with United States government agencies was approximately 32.5%, 39.9%, and 35.3% of total revenue, respectively. No single customer accounted for 10% or more of revenue for fiscal 2011, 2010, or 2009. In addition, there was no country, with the exception of the United States, where aggregate sales accounted for 10% or more of total revenue. The Company’s assets were primarily held in the United States for fiscal 2011, 2010, and 2009. Revenue by geographic destination and as a percentage of total revenue for fiscal 2011, 2010, and 2009 is as follows: 2011 2010 (in thousands) 2009 Geographic area by Destination United States $109,689 $ 97,955 $ 96,896 International 38,297 28,392 25,983 $147,986 $126,347 $122,879 Geographic area by Destination United States 74.1% 77.5% 78.9% International 25.9 22.5 21.1 100.0% 100.0% 100.0%
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Page 53 and 54: DIRECTORS Marc A. Cohen Chairman of

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