Net Income Per Share

9 Months Ended

Sep. 30, 2016

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,
	2016		2015		2016		2015
	(In Thousands, Except Per Share Data)
Basic net income per share:
Net income applicable to common shares	$	43	$	1,027	$	593	$	581

Weighted average common shares outstanding		12,253		11,568		12,057		11,463

Basic net income per share of common stock	$	0.00	$	0.09	$	0.05	$	0.05


Diluted net income per share:
Net income applicable to common shares	$	43	$	1,027	$	593	$	581

Weighted average common shares outstanding		12,253		11,568		12,057		11,463
Dilutive effects of stock options		1,837		1,707		2,023		1,809

Weighted average common shares, assuming dilutive effect of stock options		14,090		13,275		14,080		13,272

Diluted net income per share of common stock	$	0.00	$	0.08	$	0.04	$	0.04

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 shares and 68 thousand shares in the three- and nine-month periods ended September 30, 2015, respectively. There were no such anti-dilutive shares outstanding for the three- and nine-month periods ended September 30, 2016. As of September 30, 2016 and 2015, there were approximately 3.5 and 4.0 million share-based awards outstanding, respectively, under the Company’s equity plans.