Net Income Per Share

9 Months Ended

Dec. 31, 2015

Note 2. 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 the period. Diluted net income per share is computed by dividing net income by the weighted average number of dilutive common shares outstanding during the period. Diluted shares outstanding are calculated by adding to the weighted average shares outstanding any potential dilutive securities outstanding for the period. Potential dilutive securities include stock options, restricted stock units, performance-based stock awards and shares to be purchased under the Company’s employee stock purchase plan. In periods when a net loss is reported, all common stock equivalents are excluded from the calculation because they would have an anti-dilutive effect, meaning the loss per share would be reduced. Therefore, in periods when a loss is reported, basic and dilutive loss per share are the same. The Company’s basic and diluted net income per share for the three and nine months ended December 31, 2015 and 2014 were as follows (in thousands, except per share data):

	For the Three Months Ended December 31,				For the Nine Months Ended December 31,
	2015		2014		2015		2014
Basic Net Income Per Share
Net income	$	10,555	$	12,684	$	27,149	$	14,814

Weighted average shares used in computing basic net income per share		42,427		40,856		42,118		40,456

Net income per share - basic	$	0.25	$	0.31	$	0.64	$	0.37

	For the Three Months Ended December 31,				For the Nine Months Ended December 31,
	2015		2014		2015		2014
Diluted Net Income Per Share
Net income	$	10,555	$	12,684	$	27,149	$	14,814

Weighted average shares used in computing basic net income per share		42,427		40,856		42,118		40,456
Effect of dilutive securities		2,522		2,028		2,687		1,889
Weighted average shares used in computing diluted net income per share		44,949		42,884		44,805		42,345

Net income per share - diluted	$	0.23	$	0.30	$	0.61	$	0.35

For the three and nine months ended December 31, 2015, approximately 14,000 and 7,000 shares, respectively, underlying out-of-the-money stock options were not included in the computation of diluted earnings per share because their effect would have been anti-dilutive. Also, approximately 226,000 restricted shares in each of the three and nine months ended December 31, 2015, related to performance-based awards for which milestones have not been met, were not included in the computation of diluted earnings per share.

For the three and nine months ended December 31, 2014, approximately 1,000 and 36,000 shares, respectively, underlying out-of-the-money stock options were not included in the computation of diluted earnings per share because their effect would have been anti-dilutive. Also, approximately 460,000 restricted shares in each of the three and nine months ended December 31, 2014 related to performance-based awards for which milestones had not been met, were not included in the computation of diluted earnings per share.