Basic and Diluted Net Income per Share

3 Months Ended

Sep. 30, 2015

4.	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 year. 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. Common share equivalents of 127,190 and 103,437 for the three months ended September 30, 2015 and 2014, respectively, were excluded from the calculation as their effect was anti-dilutive.

The following table presents a reconciliation of the numerators and denominators of basic and diluted net income per share for the periods indicated:

	Three Months Ended
	September 30,
	2015		2014

Basic and diluted EPS calculation:
Net income	$	3,207	$	387

Basic weighted average number of shares outstanding		9,112,891		8,989,751
Effect of dilutive securities:
Employee stock options		-		8,722
Restricted shares		63,821		116,892
Diluted weighted average number of shares outstanding		9,176,712		9,115,365

Basic EPS	$	0.35	$	0.04

Diluted EPS	$	0.35	$	0.04