Basic and Diluted Net Income per Share

9 Months Ended

Mar. 31, 2014

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 106,000 and 182,000 for the three months ended March 31, 2014 and 2013, respectively, were excluded from the calculation as their effect was antidilutive.  Common share equivalents of 112,000 and 251,000 for the nine months ended March 31, 2014 and 2013, 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 March 31,				Nine Months Ended March 31,
	2014		2013		2014		2013
Basic and diluted earnings per share (EPS) calculation:
Net income	$	1,082	$	937	$	2,905	$	1,935
Basic weighted average number of shares outstanding		8,944		8,754		8,897		8,726
Effect of dilutive securities:
Restricted stock		129		133		164		147
Stock options		17		7		13		-
Diluted weighted average number of shares outstanding		9,090		8,894		9,074		8,873
Basic EPS	$	0.12	$	0.11	$	0.33	$	0.22
Diluted EPS	$	0.12	$	0.11	$	0.32	$	0.22