Pzena Investment Management, Inc. (NYSE: PZN) reported the following GAAP and non-GAAP basic and diluted net income and earnings per share for the first quarter of 2010 (in thousands, except per-share amounts):
  GAAP Basis   Non-GAAP Basis
For the Three Months Ended For the Three Months Ended

March 31,

March 31,
2010   2009 2010   2009

(unaudited)
 
Basic Net Income $ 984 $ 482 $ 744 $ 270
Basic Earnings Per Share $ 0.11 $ 0.07 $ 0.09 $ 0.04
 
Diluted Net Income $ 5,722 $ 2,776 $ 5,482 $ 2,564
Diluted Earnings Per Share $ 0.09 $ 0.04 $ 0.08 $ 0.04
 

Diluted net income generally assumes that all dilutive operating company membership units are converted into Company stock at the beginning of the reporting period and the resulting change to Company income associated with its increased interest in the operating company is taxed at the Company’s effective rate.