Basic and Diluted Net Income per Share

6 Months Ended

Dec. 31, 2013

Basic and Diluted Net Income per Share [Abstract]

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 172,000 and 272,000 for the three months ended December 31, 2013 and 2012, respectively, were excluded from the calculation as their effect was antidilutive.  Common share equivalents of 116,000 and 265,000 for the six months ended December 31, 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 December 31,				Six Months Ended December 31,
	2013		2012		2013		2012
Basic and diluted earnings per share (EPS) calculation:
Net income	$	1,089	$	673	$	1,823	$	998
Basic weighted average number of shares outstanding		8,934		8,741		8,874		8,712
Effect of dilutive securities:
Restricted stock		97		110		174		140
Stock options		10		-		12		-
Diluted weighted average number of shares outstanding		9,041		8,851		9,060		8,852
Basic EPS	$	0.12	$	0.08	$	0.21	$	0.11
Diluted EPS	$	0.12	$	0.08	$	0.20	$	0.11