Earnings Per Share

6 Months Ended

Dec. 31, 2011

Earnings Per Share [Abstract]

Earnings Per Share

Note 8—Earnings Per Share

Basic earnings per share ("EPS") is computed by dividing net income by the weighted-average number of common shares outstanding during the period.

Diluted EPS is computed by dividing net income, adjusted for the effect of dilutive securities, by the weighted-average number of common and common equivalent shares outstanding during the period. Common equivalent shares are excluded from the computation if the effect is anti-dilutive. The Company uses the treasury stock method to reflect the dilutive effect of outstanding stock options.

The Company had 406,290 and 531,209 outstanding employee stock options at December 31, 2011 and 2010, respectively. The calculation of diluted EPS included all of the outstanding stock options.

The table below presents the computation of basic and diluted EPS for the three and six months ended December 31, 2011 and 2010, respectively (in thousands, except per share data):

	Three Months Ended December 31,				Six Months Ended December 31,
	2011		2010		2011		2010
Numerator:
Net income	$	5,863	$	9,033	$	10,281	$	12,379
Denominator:
Weighted-average common shares outstanding		23,285		22,827		23,320		22,807
Net common stock equivalents assuming the exercise of in-the-money stock options		186		201		176		183
Weighted-average common and common equivalent shares outstanding, assuming dilution		23,471		23,028		23,496		22,990
Earnings Per Share:
Basic	$	0.25	$	0.40	$	0.44	$	0.54
Diluted	$	0.25	$	0.39	$	0.44	$	0.54