Net Income (Loss) Per Share

9 Months Ended

Jun. 30, 2012

Net Income (Loss) Per Share

Net Income (Loss) Per Share

Note C — Net Income (Loss) Per Share

Net income (loss) per common share is computed by dividing net income (loss) by 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 shares outstanding during the period, increased to include dilutive potential common shares issuable upon the exercise of stock options that were outstanding during the period.  For periods of net loss, diluted net loss per common share equals basic net loss per common share because common stock equivalents are not included in periods where there is a loss, as they are antidilutive.  A reconciliation of the numerator and denominator in the basic and diluted net income (loss) per share calculation is as follows:

	Three Months Ended					Nine Months Ended
	June 30,		June 30,			June 30,		June 30,
	2012		2011			2012		2011
Numerator:
Net income (loss)	$	495,924	$	(293,964	)	$	1,023,091	$	(1,722,443	)
Denominator:
Denominator for basic net income (loss) per share- weighted average shares outstanding	12,008,420		12,316,878			12,036,124		12,222,146
Effect of dilutive stock options	364,920		—			303,921		—
Denominator for diluted net income (loss) per share- weighted average shares outstanding	12,373,340		12,316,878			12,340,045		12,222,146
Basic net income (loss) per share	$	0.04	$	(0.02	)	$	0.09	$	(0.14	)
Dilute net income (loss) per share	$	0.04	$	(0.02	)	$	0.08	$	(0.14	)

Employee stock options to purchase 1,063,500 shares were excluded from the diluted net income per share calculation for the third quarter of fiscal 2012 because their exercise prices were greater than the average market price of the Company’s common stock and their effect would have been antidilutive.