EARNINGS PER SHARE

3 Months Ended

Dec. 31, 2011

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 components used in the computation of Basic and Diluted EPS (in thousands):

	Three Months Ended
	December 31,
	2011		2010
Shares:
Basic shares outstanding		19,641		19,076
Dilutive effect of equity award plans		398		−
Dilutive shares outstanding		20,039		19,076

Diluted EPS for the quarter ended December 31, 2011 excluded the following antidilutive securities: outstanding options to purchase a total of 1.0 million shares of common stock at a weighted average price per share of $16.14 and warrants to purchase 3,690,000 shares of common stock at a weighted average exercise price per share of $5.11.

For the quarter ended December 31, 2010, Basic EPS and Diluted EPS shares were the same because the impact of potential dilutive securities would have been antidilutive.  Accordingly, the following were excluded from the Diluted EPS computation as of December 31, 2010: outstanding options to purchase a total of 2.5 million shares of common stock at a weighted average price per share of $9.03, warrants to purchase 3,690,000 shares of common stock at a weighted average exercise price per share of $5.11. Additionally excluded were 69,300 shares of restricted stock outstanding (at a fair value of $16.42 per share) that did not have participating rights and, as such, were excluded from the Diluted EPS calculation.