Earnings Per Share

9 Months Ended

Mar. 31, 2012

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 378,282 and 485,331 outstanding employee stock options at March 31, 2012 and 2011, 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 nine months ended March 31, 2012 and 2011, respectively (in thousands, except per share data):

	Three Months Ended March 31,				Nine Months Ended March 31,
	2012		2011		2012		2011
Numerator:
Net income	$	6,079	$	3,873	$	16,361	$	16,253
Denominator:
Weighted-average common shares outstanding		23,423		23,073		23,354		22,894
Net common stock equivalents assuming the exercise of in-the-money stock options		183		189		171		175
Weighted-average common and common equivalent shares outstanding, assuming dilution		23,606		23,262		23,525		23,069
Earnings Per Share:
Basic	$	0.26	$	0.17	$	0.70	$	0.71
Diluted	$	0.26	$	0.17	$	0.70	$	0.70

As stated in Note 7, the release of a valuation allowance against certain deferred tax assets at December 31, 2010 resulted in a non-recurring increase in the Company's basic earnings per share of $0.22 and diluted earnings per share of $0.21 for the nine months ended March 31, 2011.