NOTE 13—NET INCOME PER SHARE

The Company applies the two-class method to calculate and present net income per share. Certain of the Company's restricted (non-vested) share awards contain non-forfeitable rights to dividends and are considered participating securities for purposes of computing net income per share pursuant to the two-class method. Under the two-class method, net earnings are reduced by the amount of dividends declared (whether paid or unpaid) and the remaining undistributed earnings are then allocated to common stock and participating securities, based on their respective rights to receive dividends.

Basic earnings per common share are calculated by dividing income available to common stockholders by the weighted average number of shares outstanding during each period. Diluted earnings per common share add to the denominator incremental shares resulting from the assumed exercise of all potentially dilutive stock options, as well as unvested restricted stock and restricted stock units. Options, restricted stock and restricted stock units are primarily held by directors, officers and certain employees.

The Company uses the two-class method to calculate net income per share as both classes share the same rights in dividends. Therefore, basic and diluted earnings per share (“EPS”) are the same for both classes of ordinary shares.

A summary of shares used in the EPS calculations follows (in thousands except share and per share data):



	Three Months Ended				Nine Months Ended
Earnings Per Share	June 28, 2019		June 29, 2018		June 28, 2019		June 29, 2018
Basic net income per share:
Net income	$	1,211	$	204	$	2,953	$	1,289
Less: Income attributable to non-vested shares	10		2		25		13
Net income available to common stockholders	$	1,201	$	202	$	2,928	$	1,276

Weighted average common shares outstanding	10,332,548		10,243,286		10,294,173		10,221,869

Basic net income per share	$	0.12	$	0.02	$	0.28	$	0.12

Diluted net income per share:
Net income	$	1,211	$	204	$	2,953	$	1,289
Shares used in computing basic net income per share	10,332,548		10,243,286		10,294,173		10,221,869
Dilutive effect of non-vested shares	309,855		313,478		262,780		245,243
Shares used in computing diluted net income per share	10,642,403		10,556,764		10,556,953		10,467,112

Diluted net income per share	$	0.11	$	0.02	$	0.28	$	0.12

The diluted weighted average share calculations do not include the following shares, which are not dilutive to the EPS calculations.

Three Months Ended

Nine Months Ended

June 28,
2019

June 29,
2018

June 28,
2019

June 29,
2018

Anti-dilutive shares excluded

52,523

39,335

39,872

171,791