EARNINGS PER SHARE

6 Months Ended

Aug. 31, 2017

Earnings (loss) per share:

EARNINGS PER SHARE

NOTE 8 - EARNINGS PER SHARE

Basic earnings per share is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period, plus the dilutive effect of outstanding stock options and restricted stock-based awards using the treasury stock method.

The calculation of the basic and diluted income (loss) per share of common stock is as follows (in thousands, except per share value):

	Three Months Ended				Six Months Ended
	August 31,				August 31,
	2017		2016		2017		2016
Numerator:
Net income (loss)	$	12,232	$	521	$	9,579	$	(2,138	)
Denominator:
Basic weighted average number of common shares outstanding		35,204		36,390		35,136		36,425
Effect of stock options and restricted stock units computed on treasury stock method		817		459		837		-
Diluted weighted average number of common shares outstanding		36,021		36,849		35,973		36,425
Income (loss) per common share:
Basic	$	0.35	$	0.01	$	0.27	$	(0.06	)
Diluted	$	0.34	$	0.01	$	0.27	$	(0.06	)

All outstanding options and restricted stock units for the six months ended August 31, 2016 were excluded from the computation of diluted earnings per share because we reported a net loss for this period presented and the effect of inclusion would be antidilutive.

As described in Note 6, we have the option to pay cash, issue shares of common stock or any combination thereof for the aggregate amount due upon conversion of the Notes. Our intent is to settle the principal amount of the Notes in cash upon conversion. As a result, only the shares issuable for the conversion value, if any, in excess of the principal amount of the Notes would be included in diluted earnings per share. From the time of the issuance of Notes, the average market price of our common stock has been less than the initial conversion price, and consequently no shares have been included in diluted earnings per share for the conversion value of the Notes.