Basic and Diluted Net Income per Share

3 Months Ended

Sep. 30, 2013

Basic and Diluted Net Income per Share

Basic and Diluted Net Income per Share

3. Basic and Diluted Net Income per Share

Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding during each period.  Diluted net income per share is computed by dividing net income by the weighted average number of shares including dilutive common share equivalents.  Under the treasury stock method, incremental shares representing the number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued are included in the computation.  Diluted earnings per common share assumes exercise of outstanding stock options and vesting of restricted stock when the effects of such assumptions are dilutive.  Common share equivalents of 121,000 and 290,000 for the three months ended September 30, 2013 and 2012, respectively, were excluded from the calculation as their effect was antidilutive.

               The following table presents a reconciliation of the numerators and denominators of basic and diluted net income per share for the periods indicated (dollars and share data in thousands, except per-share amounts):

	Three Months Ended September 30,
	2013		2012
Basic and diluted earnings per share (EPS) calculation:
Net income	$	734	$	325
Basic weighted average number of shares outstanding		8,813		8,683
Effect of dilutive securities:
Restricted stock		223		118
Stock options		13		-
Diluted weighted average number of shares outstanding		9,049		8,801
Basic EPS	$	0.08	$	0.04
Diluted EPS	$	0.08	$	0.04