Earnings Per Share

6 Months Ended

Mar. 31, 2014

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 March 31,				Six months ended March 31,
	2014		2013		2014		2013
Numerator:
Net income	$	738	$	1,000	$	1,426	$	2,230
Denominator:
Denominator for basic net income per common share — weighted average shares outstanding	25,644		26,138		25,680		26,163
Effect of dilutive securities:
Stock options and restricted stock units	500		338		509		311
Denominator for diluted net income per common share — adjusted weighted average shares	26,144		26,476		26,189		26,474
Net income per common share, basic	$	0.03	$	0.04	$	0.06	$	0.09
Net income per common share, diluted	$	0.03	$	0.04	$	0.05	$	0.08

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 3,347,082 and 2,627,905 potentially dilutive shares related to such stock options for the three and six month periods ended March 31, 2014, respectively. For both the three and six months ended March 31, 2013, there were 3,127,682 potentially dilutive shares related to such stock options.