Net Income Per Share

9 Months Ended

Sep. 30, 2015

10.

NET INCOME PER SHARE:

A reconciliation of net income and weighted average shares used in computing basic and diluted net income per share is as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
	(In Thousands, Except Per Share Data)
Basic net income per share:
Net income applicable to common shares	$	1,027	$	976	$	581	$	3,408

Weighted average common shares outstanding		11,568		11,197		11,463		11,092

Basic net income per share of common stock	$	0.09	$	0.09	$	0.05	$	0.31

Diluted net income per share:
Net income applicable to common shares	$	1,027	$	976	$	581	$	3,408

Weighted average common shares outstanding		11,568		11,197		11,463		11,092
Dilutive effects of stock options		1,707		1,775		1,809		1,881

Weighted average common shares, assuming dilutive effect of stock options		13,275		12,972		13,272		12,973

Diluted net income per share of common stock	$	0.08	$	0.08	$	0.04	$	0.26

Share-based awards, inclusive of all grants made under the Company’s equity plans, for which either the stock option exercise price or the fair value of the restricted share award exceeds the average market price over the period, have an anti-dilutive effect on earnings per share, and accordingly, are excluded from the diluted computations for all periods presented. Had such shares been included, shares for the diluted computation would have increased by approximately 69 thousand and 68 thousand in the three- and nine-month periods ended September 30, 2015, respectively. The diluted computation would have increased by approximately 303 thousand and 314 thousand in the three- and nine-month periods ended September 30, 2014, respectively. As of September 30, 2015 and 2014, there were approximately 4.0 million share-based awards outstanding, respectively, under the Company’s equity plans.