Earnings Per Share

3 Months Ended

Dec. 31, 2013

Earnings Per Share [Abstract]

EARNINGS PER SHARE

EARNINGS PER SHARE

Basic net income per common share is calculated based on the weighted average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing net income by the weighted average number of common and potentially dilutive common shares outstanding during the period. Potentially dilutive common shares of our stock result from dilutive common stock options and restricted stock units.

The following table is a reconciliation of the numerators and denominators in the net income per common share calculations (in thousands, except per common share data):

	Three months ended December 31,
	2013		2012
Numerator:
Net income	$	688	$	1,230
Denominator:
Denominator for basic net income per common share — weighted average shares outstanding	25,716		26,188
Effect of dilutive securities:
Stock options and restricted stock units	513		246
Denominator for diluted net income per common share — adjusted weighted average shares	26,229		26,434
Net income per common share, basic	$	0.03	$	0.05
Net income per common share, diluted	$	0.03	$	0.05

Because their effect would be anti-dilutive at period end, certain potentially dilutive shares related to stock options to purchase common shares were not included in the above computation of diluted earnings per common share. This is because the options’ exercise prices were greater than the average market price of our common shares. There were 2,699,776 and 4,278,823 potentially dilutive shares related to such stock options for the three month periods ended December 31, 2013 and 2012, respectively.