EARNINGS PER SHARE

9 Months Ended

Jun. 30, 2012

EARNINGS PER SHARE [Abstract]

EARNINGS PER SHARE

NOTE 14 − EARNINGS PER SHARE

Basic earnings per share ("Basic EPS") is computed using the weighted average number of common shares outstanding during the period, inclusive of nonvested share-based awards that are entitled to receive non-forfeitable dividends.  The diluted earnings per share ("Diluted EPS") computation takes into account the effect of potential dilutive common shares.  Potential common shares, consisting primarily of stock options, warrants and director deferred shares, are calculated using the treasury stock method.

The following table presents a reconciliation of the shares used in the computation of Basic EPS and Diluted EPS (in thousands):

	Three Months Ended June 30,				Nine Months Ended June 30,
	2012		2011		2012		2011
Shares
Basic shares outstanding		19,815		19,741		19,618		19,389
Dilutive effect of stock options and award plans (1)		1,221		−		846		−
Dilutive shares outstanding		21,036		19,741		20,464		19,389

(1) Due to the losses for the three and nine months ended June 30, 2011, stock options and warrants outstanding were antidilutive and, therefore, excluded from the Diluted EPS computation.  As a result, Basic EPS and Diluted EPS shares were the same. Excluded from the Diluted EPS calculation for the three and nine months ended June 30, 2011 were outstanding options to purchase 1.0 million shares of common stock at a weighted average exercise price of $16.27, as well as outstanding warrants to purchase 3.7 million shares of common stock at an average exercise price of $5.11.