Net Income per Common Share

6 Months Ended

Jul. 31, 2019

Net Income per Common Share

Net Income per Common Share

Note 5 – Net Income per Common Share

Basic net income per common share has been computed using the weighted average number of common shares outstanding during each period. Diluted net income per share is computed using the weighted average number of common shares and potential dilutive common shares, consisting of unvested restricted stock unit awards and unexercised stock options outstanding during the period. Approximately 794,400 and 327,000 unvested shares of common stock have been excluded from the diluted net income per share calculation for the three months ended July 31, 2019 and 2018, respectively. Approximately 606,500 and 322,000 unvested shares of common stock have been excluded from the diluted net income per share calculation for the six months ended July 31, 2019 and 2018, respectively. All share-based payments outstanding that vest based on the achievement of performance and/or market price conditions, and for which the respective performance and/or market price conditions have not been achieved, have been excluded from the diluted per share calculation.

The following table reconciles the numerators and denominators used in the calculation of basic and diluted net income per share:

	Three Months Ended July 31,				Six Months Ended July 31,
	2019		2018		2019		2018
	(In thousands, except per share amounts)
Net income	$	11,119	$	10,077	$	23,162	$	19,962
Basic net income per share:
Basic common shares		48,450		49,169		48,619		49,148
Basic net income per share	$	0.23	$	0.20	$	0.48	$	0.41
Diluted net income per share:
Basic common shares		48,450		49,169		48,619		49,148
Diluted restricted stock unit awards and stock options		666		1,246		817		1,124
Diluted common shares		49,116		50,415		49,436		50,272
Diluted net income per share	$	0.23	$	0.20	$	0.47	$	0.40