Net Income Per Share

6 Months Ended

Sep. 30, 2016

Earnings Per Share [Abstract]

Net Income Per Share

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 six months ended September 30, 2016 and 2015 were as follows (in thousands, except per share data):

	For the Three Months Ended September 30,				For the Six Months Ended September 30,
	2016		2015		2016		2015
Basic Net Income Per Share
Net income	$	8,875	$	7,735	$	21,785	$	16,594
Weighted average shares used in computing basic net    income per share		43,129		42,228		42,971		41,963
Net income per share - basic	$	0.21	$	0.18	$	0.51	$	0.40

	For the Three Months Ended September 30,				For the Six Months Ended September 30,
	2016		2015		2016		2015
Diluted Net Income Per Share
Net income	$	8,875	$	7,735	$	21,785	$	16,594
Weighted average shares used in computing basic net    income per share		43,129		42,228		42,971		41,963
Effect of dilutive securities		1,451		2,694		1,522		2,815
Weighted average shares used in computing diluted    net income per share		44,580		44,922		44,493		44,778
Net income per share - diluted	$	0.20	$	0.17	$	0.49	$	0.37

For the three and six months ended September 30, 2016, approximately 1,500 and 8,800 shares underlying out-of-the-money stock options, respectively, were excluded in the computation of diluted earnings per share because their effect would have been anti-dilutive. Also, approximately 186,000 restricted shares in each of the three and six months ended September 30, 2016, respectively, 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 six months ended September 30, 2015, approximately 1,000 shares underlying out-of-the-money stock options, respectively, were excluded in the computation of diluted earnings per share because their effect would have been anti-dilutive. Also, approximately 227,000 and 226,000 restricted shares in each of the three and six months ended September 30, 2015, respectively, related to performance-based awards for which milestones had not been met were not included in the computation of diluted earnings per share.